LONDON: Copper prices pushed higher on Thursday on hopes that top metals consumer China will unleash more stimulus in its new five-year plan.
Benchmark three-month copper on the London Metal Exchange rose 1.6% to $10,834 a metric ton by 1430 GMT, its highest since October 14.
LME copper has gained 23% so far this year, having touched its strongest in 16 months at $11,000 on October 9.
China concluded its ruling Communist Party’s ongoing Fourth Plenum on Thursday, announcing that it aimed to build a modern industrial system and strong domestic market.
A communique outlined China’s priorities in its next five-year development plan, which will only be released in full at a parliamentary meeting in March.
“China’s pretty strong, most of the China macro data has been pretty good, and I think there’s a decent chance we’re going to get more stimulus,” said Dan Smith, managing director at Commodity Market Analytics.
“Retail sales for China, however, were not that great, so the consumer side of the economy is an obvious area where they may be able to do more, like giving incentives.”
Aluminium hits highest since June 2022 after Iceland smelter incident
The most active copper contract on the Shanghai Futures Exchange closed daytime trading 1.3% firmer at 86,070 yuan ($12,083.39) per metric ton, the biggest gain in a single session since October 9 when it set a more than 16-month high.
Among other SHFE base metals, lead closed 2.7% higher at 17,615 yuan a ton, after touching a seven-month high earlier in the session. LME lead gained 0.8% to $2,006 a ton.
The gains came as Northern China’s Hebei Province restricted the entry of trucks with higher emissions into factories, delaying lead deliveries, according to Chinese information service Shanghai Metals Market.
The move would tighten regional supply of the heavy metal, traders said.
LME aluminium touched its highest since May 31, 2022, climbing 1.8% to $2,856 a ton on worries about supply.
South32 said on Thursday that its Mozal smelter in South Africa had failed to secure a suitable power agreement and that the operation was due to be suspended in March next year.
The company had warned in August that it may not be able to secure affordable power for the smelter.
LME nickel advanced 1% to $15,320 a ton, tin rose 0.8% to $35,660 and zinc slipped 0.5% to $3,014.50.
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