BEIJING: Copper prices rose on Monday, as fears of a US recession faded following a batch of strong data last week and as inventories in top consumer China declined.
Three-month copper on the London Metal Exchange gained 0.9% to $9,201.50 per metric ton by 0202 GMT, after recording its first weekly gain in six last week.
The most-traded September copper contract on the Shanghai Futures Exchange added 0.5% to 73,960 yuan ($10,345.50) a ton.
Last week, reports on retail sales, inflation and producer prices helped allay fears of an economic downturn in the United States sparked by weaker-than-expected employment data at the start of the month.
Minutes of the Federal Reserve’s July policy meeting and Chair Jerome Powell’s speech at Jackson Hole are likely to be the main drivers of currency movement and investor sentiment this week.
The main union at BHP’s Escondida copper mine in Chile agreed to management’s sweetened wage offer on Friday, leading the union to suspend its strike and easing concerns about global supplies of the metal.
Supply risks set copper on track for first weekly gain in six
Participants last week had expressed wariness of possible prolonged strike at the mine, which accounted for nearly 5% of global supply in 2023.
Also lending some support to copper prices were lower inventories in top consumer China.
LME aluminium gained 0.5% to $2,378 a ton, tin added 0.6% to $32,095, zinc increased 0.8% to $2,785, lead climbed 0.7% to $2,051.50 and nickel nudged 0.4% higher to $16,430.
SHFE aluminium rose 1.3% to 19,545 yuan a ton, zinc was 0.7% higher at 23,400 yuan, lead increased 0.4% to 17,745 yuan, tin gained 0.5% to 263,850 yuan and nickel added 0.4% to 129,450 yuan.
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