Home Business Copper near 5-month high on China’s property support; Fed warning caps gains

Copper near 5-month high on China’s property support; Fed warning caps gains

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Copper prices hovered near a five-month high on Monday, as supportive measures from the Chinese government for its property sector that consumes a vast amount of metals boosted sentiment.

Three-month copper on the London Metal Exchange (LME) rose 0.3% at $8,519 a tonne by 0725 GMT, aluminum fell 1% to $2,439.50 a tonne, lead shed 1.3% to $2,134 a tonne and tin declined 1.2% to $21,050 a tonne.

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China extended more support to property developers to shore up the struggling sector.

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“The policies are strong,” Jinrui Futures said in a note, adding that the support level for SHFE copper was around 64,000-65,000 yuan a tonne.

LME copper briefly hit its highest since June 23 at $8,600 a tonne earlier in the session, also buoyed by China easing some of its COVID-19 rules.

However, Federal Reserve Governor Christopher Waller’s warning that the “endpoint” of rate increases is likely still “a ways off” capped gains, as it tamed hopes of monetary easing after data showed a modest miss on U.S. inflation.

“The global economic growth is still facing downward pressure, and it is still judged that this price increase is a strong rebound in a declining trend, not a reversal,” Jinrui Futures added.

The most-traded December copper contract on the Shanghai Futures Exchange fell 0.9% to 67,010 yuan ($9,515.63) a tonne, slipping from its highest since June 16 hit in the previous session.

The dollar was steady, edging up from a near three-month low, making greenback-priced commodities more expensive to holders of other currencies.

SHFE nickel dropped 1.6% to 200,570 yuan a tonne and tin shed 0.1% to 177,070 yuan a tonne. Aluminum rose 0.3% to 18,780 yuan a tonne and zinc advanced 0.8% to 23,985 yuan a tonne.

For the top stories in metals and other news, click or ($1 = 7.0421 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Rashmi Aich)


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