LONDON: Copper prices in London were on track for their biggest monthly gain since April on Monday as a series of stimulus measures in top metals consumer China boosted sentiment towards growth-dependent industrial metals.
Three-month copper on the London Metal Exchange (LME)rose 0.3% to $10,008 per metric ton by 1000 GMT after hitting $10,158, its highest since June 7. The metal, used in power and construction, is up 8.3% so far in September.
China’s central bank said on Sunday it would tell banks to lower mortgage rates for existing home loans before Oct. 31, as part of sweeping policies to support the country’s beleaguered property market.
Chinese stocks surged on Monday, and China’s yuan posted its biggest quarterly gain against the dollar since 2020, making dollar-priced metals more attractive for buyers using this currency.
U.S. Comex copper futures touched $4.7900 a lb, highest since May 28, before returning to $4.6105, up 0.2% vs Friday.
“It seems like traders got a bit carried away overnight, especially in New York, perhaps expressing a market where liquidity is poor ahead of the China’s Golden week holiday and LME Week in London,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Copper set for best weekly gain since mid-May on Chinese stimulus
LME Week, the annual gathering of metals industry participants in London, started on Monday. The calendar end of the quarter, when some investors square their books, coincides on Monday with the last trading day in China before the week-long Golden Week holiday.
Copper will need to see signs of actual physical demand improving to sustain the momentum and for the price to move higher, Hansen said, with $10,200 being the key level. The metal hit a record high of $11,104.5 in May.
LME nickel rose 2.0% to $17,335, zinc increased 0.6% to $3,107.5, lead added 0.1% to $2,122.50 and tin climbed 0.6% to $33,125, while aluminium eased 1.7% to $2,602 a ton.
Zinc, nickel and tin prices touched multi-month highs.
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