Copper prices rose to a two-week high on Friday, lifted by hopes of stimulus in top metals consumer China after President Xi Jinping pushed for the country to achieve its annual economic target.
Three-month copper on the London Metal Exchange was up 0.7% at $9,275 per metric ton by 0313 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange advanced 1.2% to 74,280 yuan ($10,449.76) a ton.
Chinese President Xi Jinping on Thursday urged authorities to strive to achieve the country’s annual economic and social development goals, amid expectations for more measures to bolster a slow economic recovery.
“This is really good to lift sentiment. Commodities prices are higher in expectations of a stimulus,” said a trader.
“We also have the mid-autumn long holiday next week for China so all commodities are having this usual small restocking. All the buy volumes that are usually spread out are concentrated so spot purchase is pretty decent today,” the trader added. Chinese markets will be closed for the Mid Autumn Festival from Sept. 16-17.
On a weekly basis, LME copper is up 3.1%, on track for the biggest weekly gain since the week of July 1.
Copper jumps to almost two-week high
All other base metals were also rising week-on-week.
A softer dollar on Friday also helped make greenback-priced metals cheaper to holders of other currencies.
The US Federal Reserve is likely to cut interest rates next week.
LME aluminium increased 0.4% to $2,425.50 a ton, zinc edged up 0.2% at $2,862, lead advanced 0.8% to $2,043, tin climbed 1% to $31,730, while nickel fell 0.2% to $16,100.
SHFE aluminium climbed 1% to 19,775 yuan a ton, nickel edged up 0.3% at 123,820 yuan, zinc jumped 2.6% to 23,800 yuan, lead increased 0.7% to 16,760 yuan and tin advanced 1.8% to 258,570 yuan.
Comments