Copper prices rose on Thursday, rebounding from losses earlier in the session, as Chinese officials pledged more policy measures to spur growth.

Three-month copper on the London Metal Exchange (LME) rose 0.6% to $9,869.50 per metric ton by 0631 GMT, moving closer to the 10-week high of $9,913 it hit in the previous session.

The most-traded November copper contract on the Shanghai Futures Exchange (SHFE) rose 0.1% to 77,500 yuan ($11,042.40) a ton.

Chinese leaders pledged to hit the 2024 economic growth target and stop declines in the housing market.

“It’s the macro story and positive expectations that is driving prices, nothing to do with fundamentals or real demand,” said a trader. LME copper has gained 6.5% so far this month and is on track for the best monthly gain since April.

The US Federal Reserve cut rates last week, and China unveiled its biggest stimulus since the pandemic this week. Earlier in the session, copper prices fell on profit taking on both bourses.

A slew of disappointing data this year raised concerns of a prolonged structural slowdown in China, especially in the property sector, which consumes a vast amount of metals. “The market rallied really quick.

Copper retreats after touching 10-week high

There needs to be short-term pullback and consolidation. But in the longer term, it will rise again.

The China story is positive,“ the trader added. LME aluminium rose 0.6% to $2,554 a ton, nickel increased 0.1% to $16,805, lead jumped 0.4% to $2,105, zinc climbed 1% to $3,026, while tin traded nearly flat at $32,095.

SHFE aluminium fell 0.1% to 20,145 yuan a ton, tin shed 1.4% to 257,060 yuan, while nickel increased 0.6% to 128,450 yuan, zinc rose 0.7% to 24,645 yuan and lead edged up 0.1% to 16,685 yuan.