Copper prices in Shanghai climbed five-week highs on Thursday, supported by the prospect of a U.S. rate cut this year, while an output cut in South Korea also helped zinc hit a five-week high.
The most-traded April copper contract on the Shanghai Futures Exchange rose 0.5% to 69,350 yuan ($9,635.69) a metric ton by 0321 GMT. Earlier in the session, it hit 69,580 yuan, its highest since Feb. 1.
Prices were supported by the reassurance from U.S. Federal Reserve Chair Jerome Powell that the central bank would likely cut rates in the coming months, which could lead to an improvement in economic activities and better metals demand.
Top consumer China imported 902,000 tons of unwrought copper in the first two months of this year, up 2.6% from a year ago.
Yangshan copper premium rose to $60 a ton on Wednesday, the highest since Jan. 19, indicating improving appetite for copper import into China.
China Jan-Feb copper imports rise 2.6% to 902,000 tons, customs says
However, three-month copper on the London Metal Exchange fell 0.2% to $8,557 a ton, retreating from Wednesday’s gain, as uncertainty over demand and the lack of details on Chinese stimulus measures weighed.
SHFE zinc climbed as much as 1.3% to 21,030 yuan, the highest since Feb. 1. LME zinc was flat at $2,494.50 on Thursday, but it surged to the highest since Feb. 1 in the previous session.
The zinc price rally was fuelled by a 20% production cut at Young Poong Corp’s Seokpo smelter in South Korea.
SHFE aluminium edged up 0.2% at 19,070 yuan a ton, nickel increased 0.2% to 135,880 yuan, lead was up 0.3% at 16,060 yuan and tin rose 1.2% to 221,350 yuan.
LME aluminium eased 0.2% to $2,231.50 a ton, nickel declined 0.4% to $17,650, zinc edged down 0.1% at $2,491.50, while lead rose 0.7% to $2,079, and tin advanced 0.1% to $27,220.
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