Mumbai, 06 Feb (Commoditiescontrol): Copper prices in London rose marginally on Tuesday, marking the first increase in five sessions, boosted by China's market stabilization efforts and a decrease in metal inventory. However, the rise was tempered by a strong dollar. The three-month copper price on the London Metal Exchange (LME) increased by 0.2% to $8,379.5 per metric ton, around 3:35 PM IST.
Chinese shares recorded their biggest one-day gain in two years, reflecting Beijing's intensified efforts to support faltering markets, contributing to the yuan's stabilization.
LME-registered warehouse inventories of copper reached a five-month low, lending further support to the metal, commonly used in power and construction. Despite this, copper's recovery from a four-session decline was hindered by expectations of U.S. Federal Reserve rate cuts and a strong dollar. The dollar index remains near a three-month high, influencing the cost of dollar-priced metals for buyers using other currencies.
Ahead of China's Lunar New Year holiday, copper demand remains subdued, as indicated by LME cash copper's record high discount to the three-month contract.
In other metals, aluminium, zinc, lead, and tin posted modest gains on the LME, while nickel dropped 0.7%, affected by muted pre-holiday stainless steel demand in China and high LME nickel stocks, the highest since May 2022.
(By Commoditiescontrol Bureau; +91-9820130172)
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