London copper prices ticked higher on Tuesday, as hopes about further stimulus measures and demand recovery in top consumer China countered pressure from a firmer US dollar.
Three-month copper on the London Metal Exchange (LME) rose 0.3% to $9,588 per metric ton by 0214 GMT after hitting a one-week high in the previous session.
The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) fell 0.7% to 76,890 yuan ($10,795.06) a ton.
The US dollar clung to two-and-half month highs, making greenback-priced metals less appealing for holders of other currencies.
China lowered benchmark lending rates at the monthly fixing on Monday, after reductions to other policy rates last month as part of a package of stimulus measures aimed at revitalizing the economy.
Recent data from China indicates a slowdown in economic growth, underscoring the necessity for additional stimulus measures.
Base metals are extensively used in sectors such as construction and electronics, with China as the leading consumer.
Any measures to boost the country’s economic growth, particularly in light of ongoing weaknesses in the property sector, could potentially increase demand for physical metals.
The copper inventory in SHFE warehouses rose last week to 168,425 tons, its highest level since Sept. 13.
China rate cuts fuel copper’s climb to one-week peak
Meanwhile, China’s refined copper output in September remained at 1.14 million tons, up 0.4% from a year earlier.
The global refined copper market showed a 54,000 metric tons surplus in August, compared with a 73,000 metric tons surplus in July, the International Copper Study Group (ICSG) said.
LME aluminium steadied at $2,596.5 a ton, nickel decreased 0.8% to $16,560, zinc climbed 0.1% to $3,078.5, lead was 0.2% higher at $2,061, and tin was down 0.4% at $30,900.
SHFE aluminium declined 0.2% to 20,750 yuan a ton, nickel fell 1.9% to 126,530 yuan, zinc dipped 1.6% to 24,870 yuan, lead advanced 0.2% to 16,775 yuan while tin fell 1.1% to 252,960 yuan.
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