METALS-Copper up on positive China industrial data

Reuters · 09/15/2023 11:13
METALS-Copper up on positive China industrial data

Changes dateline to London, adds analyst's comment

By Julian Luk

- Copper prices rose in London on Friday and were on track for their biggest weekly growth since late July after data from top metals consumer China showed signs of stabilising economy.

Three-month copper on the London Metal Exchange CMCU3 was up 0.25% at $8,438.5 per metric ton as of 1043 GMT, after touching $8,507.5, the highest level since Sept. 4.

China's factory output and retail sales grew at a faster pace in August, though tumbling investment in the crisis-hit property sector threatens to undercut a flurry of support steps.

"The figures are likely to have a positive effect on base metals prices given that they should further allay fears that the momentum of growth in China, the largest consumer, could continue to slow," Thu Lan Nguyen at Commerzbank said in a .

"That said, pronounced price rally can be expected until the real estate market shows clearer signs of recovering."

The yuan got a boost against the U.S. currency from the economic data, making dollar-priced metals more attractive for Chinese buyers.

The dollar was slightly weaker after hitting its six-month high on Thursday. FRX/

In the United States, the United Auto Workers union launched simultaneous strikes at three factories owned by General Motors, Ford and Chrysler-owner Stellantis, kicking off the most ambitious U.S. industrial labour action in decades.

Meanwhile, copper inventories in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH have been rising for a month and reached their highest level since late July this week.

Copper stocks in LME-registered warehouses MCUSTX-TOTAL are at their highest since October 2022, after sharp growth over July-September.

The discount for -term delivery versus the LME three-month copper contract CMCU0-3 rose, indicating plentiful immediate supply. It closed at $45.25 per ton on Thursday, its one-month high, compared with $4.5 on Sept. 5.

LME aluminium CMAL3 dropped 1.2% to $2,199 a ton after China's monthly production reached record high in August. Tin CMSN3 slipped 0.8% to $25,685, zinc CMZN3 rose 0.1% to $2,573, lead CMPB3 edged 0.5% higher at $2,255, while CMNI3 lost 0.9% to $20,170.

(Reporting by Julian Luk in London; Editing by Shilpi Majumdar)


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