Mumbai, 7 Oct (Commoditiescontrol): London copper prices edged higher on Monday, nearing the crucial $10,000 per metric ton level, as traders looked for further demand signals following a recent rally driven by Chinese stimulus measures.
Three-month copper on the London Metal Exchange (LME) had risen 0.4% to $9,985.50 per ton. Meanwhile, aluminium advanced 0.5% to $2,666, zinc ticked up 0.1% to $3,170, and lead climbed 0.6% to $2,161.50 per ton. Tin increased slightly by 0.2% to $33,875, while nickel dropped 0.8% to $17,840.
Copper has been hovering around the $10,000 per ton resistance level, but thin trading volumes are keeping movements restrained as top consumer China is on a holiday for the Golden Week. Market participants are awaiting China's market reopening on Tuesday to gauge whether physical demand remains robust.
A wave of Chinese stimulus measures, announced in late September, helped drive the broader base metals complex higher. LME copper surged 6.4% last month, marking its best monthly performance since April. However, further gains depend on how demand in China unfolds once its markets resume activity.
Analysts at ANZ noted that sentiment among Chinese attendees at LME Week in London was notably upbeat, contrasting with a more cautious outlook from their Western counterparts. They suggested that additional gains could occur if more details of Beijing’s fiscal stimulus measures emerge.
While LME copper inventories have been slightly declining since September, they remain significantly elevated, almost three times the levels seen in May. On Friday, the LME cash copper contract was trading at a $147.09-per-ton discount to the three-month contract, indicating ample near-term supply.
(By Commoditiescontrol Bureau: 09820130172)
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