BEIJING: Copper rose on Monday, underpinned by investors’ hope for Fed rate cuts and rising demand in top consumer China and as supply disruptions lent support.
Three-month copper on the London Metal Exchange was up 1% at $10,105 per metric ton as of 0754 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange advanced 1.1% to 81,150 yuan ($11,216.77) a ton.
After a softer-than-expected US payrolls report for April and a Federal Reserve policy announcement, expectations have risen for rate cuts this year, with market participants awaiting US inflation data to assess the prospects of rate cuts.
China’s consumer prices rose for a third straight month in April, while producer prices extended declines, signalling an improvement in domestic demand, as Beijing navigates challenges in its bid to shore up a shaky economy.
Meanwhile, copper remained underpinned by a growing supply deficit that is likely to worsen if prices don’t rise enough to incentivise new mines, said ANZ research analysts.
They estimate that the price required to incentivise a marginal greenfield project was around $12,000 per ton. LME aluminium edged 0.1% up to $2,533.50 a ton, nickel gained 0.3% to $19,000, tin climbed 0.7% to $32,320, lead moved 0.6% higher to $2,236.50, and zinc moved 0.6% higher to $2,949. SHFE aluminium slid 0.4% to 20,575 yuan, tin nudged 0.2% higher to 263,260 yuan, zinc increased 0.5% at 23,535 yuan, tin gained 0.2% to 263,260 yuan, nickel added 0.4% to 143,510 yuan and lead rose 1.3% at 18,225 yuan.
Comments
Comments are closed.