Copper prices rose on Tuesday, tracking
the U.S. equities market on prospects of a less-aggressive
approach by the Federal Reserve, although gains were limited on
weak China data.
The most-traded September copper contract on the Shanghai
Futures Exchange rise 0.2% to 62,040 yuan ($9,129.84) a
Three-month copper on the London Metal Exchange
dipped 0.3% to $7,952.50 a tonne, as of 0710 GMT, having risen
in most of the Asian trading hours to as much as 0.9%. The
contract dropped 2.8% in the previous session, the steepest
daily decline in a month.
“The price movement is just in line with macro numbers, like
high yield debt in the United States and U.S. equity markets.
The only thing keeping it from moving higher in larger steps is
the weak China demand,” said a trader.
U.S. stocks rose on Monday, with growth shares extending a
recent rally, helped last week by signs that inflation may have
peaked in July.
Chinese regulators’ latest support in its property sector,
which consumes a vast amount of metals, also aided sentiment.
However, metals demand outlook remained tepid after China
reported poor economic data in July.
“I think we will have a small window for a relief rally
today until tomorrow, then soften for the rest of the week as
U.S. stocks take a breather from the recent rally and drag the
rest of the risky assets down with it,” the trader said.
LME aluminum increased 0.6% to $2,423.50 a tonne,
zinc was up 0.8% at $3,593.50 a tonne, while lead
fell 0.3% to $2,171 a tonne.
ShFE aluminum declined 0.3% to 18,225 yuan a
tonne, nickel fell 1.9% to 173,600 yuan a tonne, lead
eased 0.4% to 15,040 yuan a tonne while zinc
rose 1.5% to 25,095 yuan a tonne.
Aluminum producer Henan Zhongfu Industrial said
they were suspending production this week as China’s Sichuan
province rationed industrial electricity consumption in its
worst heat wave in 60 years.
For the top stories in metals and other news, click
($1 = 6.7953 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Sherry