Copper prices rose on Monday, buoyed by strong Chinese exports data, improving jobs market in the United States and low inventories of the metal.
Three-month copper on the London Metal Exchange edged up 0.1% to $9,529.50 a tonne by 0328 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange advanced 0.9% to 70,130 yuan ($10,961.24) a tonne.
Exports growth in China – the world’s biggest copper consumer – beat forecasts in October on booming global demand, easing power crunch and supply chain improvement.
Inventories of the metal in ShFE warehouses fell to 37,482 tonnes, the lowest since June 2009, and stockpiles in bonded warehouses fell to a record low of 206,400 tonnes.
In addition, strong US employment data and the US congress passing a long-delayed $1-billion US infrastructure bill last week also aided sentiment.
Copper is widely used in infrastructure projects and also often used as a gauge of global economic health.
Fundamentals
- China’s copper imports in October rose for a second month, official data showed, as traders took advantage of a short period of favourable pricing to bring in bonded stocks.
- LME nickel fell 0.7% to $19,300 a tonne, zinc declined 0.5% to $3,213 a tonne and lead shed 0.4% to $2,342 a tonne.
- ShFE lead lost 1% to 15,480 yuan a tonne, zinc declined 0.6% to 22,880 yuan a tonne while nickel rose 0.8% to 142,450 yuan a tonne, and tin advanced 0.3% to 276,050 yuan a tonne.
