MOST nonferrous metals rose on Monday (Oct 21), buoyed by lending rate cuts in top consumer China and expectations of further stimulus to spur economic growth.
Three-month copper on the London Metal Exchange (LME) rose 1.1 per cent to US$9,730 per metric tonne by 0802 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange (SHFE) closed 1.3 per cent higher at 77,620 yuan (S$14,332.85) a tonne.
China cut benchmark lending rates as anticipated at the monthly fixing, following reductions to other policy rates last month as part of a package of stimulus measures to revive the economy.
Data showing slowing economic growth also reinforced hopes that China would release more stimulus measures, which could potentially help lift physical metals demand.
“People are expecting something for next year,” said analyst Matt Huang at broker BANDS Financial.
Despite Monday’s gains, copper prices in London are still 4.2 per cent below the near four-month peak of US$10,158 hit on Sep 30, while those in Shanghai are down 2.3 per cent during the same period.
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Copper inventories in SHFE warehouses rose 8 per cent last week to 168,425 tonnes, the highest since Sep 13, raising concern about physical demand in the traditionally strong consumption months in China.
“Most trading houses and smelters we met… last week are pessimistic about the price amid high downstream stock level and accumulating social stock,” Huang said, while noting that there was optimism over copper demand from the green energy transition sectors.
LME aluminium rose 1 per cent to US$2,637.50 a tonne, nickel increased 0.9 per cent to US$17,055, zinc climbed 1.1 per cent to US$3,123, tin was up 0.2 per cent at US$31,380, while lead was 0.1 per cent lower at US$2,071.
SHFE aluminium increased 1.7 per cent to 20,940 yuan a tonne, nickel rose 1.4 per cent to 130,720 yuan, zinc climbed 1 per cent to 25,230 yuan, lead advanced 0.6 per cent to 16,740 yuan, and tin edged up 0.1 per cent at 256,780 yuan. REUTERS
