Active demand in China sets copper on track for weekly gain
COPX•Warehouse stocks and other metals
Available copper stocks in LME-registered warehouses MCUSTX-TOTAL fell to 139,650 tons, daily data showed, after 4,500 tons of fresh cancellations in Asia, mainly in Taiwan and Hong Kong. 0#MCUSTX-LOC
Meanwhile, copper inventories in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH rose 2.4% this week to 56,073 tons after a three-week decline.
COMEX copper stocks HG-STX-COMEX remained broadly steady this week at 696,631 tons as the premium of US copper futures over LME prices 0#LMECMXCU: narrowed to levels insufficient to encourage physical shipments, with the White House yet to decide on refined copper tariffs.
LME aluminium CMAL3 fell 0.4% to $3,288 a ton, zinc CMZN3 rose 1.0% to $3,921, lead CMPB3 gained 0.5% to $1,918, tin CMSN3 rose 1.1% to $53,750 and nickel CMNI3 lost 0.5% to $16,215.
Chinese demand and inventories support the market
High-frequency data indicate that Chinese demand for copper, aluminium and flat steel was 1% to 2% higher year-on-year in the first half of September. End-user response to a higher copper price appeared more modest than in the past, Goldman Sachs said in a research note.
Domestic copper scrap supply in China remained tight, contributing to further delays in the return of copper smelting capacity from maintenance, the bank added.
The Yangshan copper premium SMM-CUYP-CN, a gauge of Chinese demand for imported copper, has climbed 72% so far in September to $124 a ton, its highest in nearly four years.
Dollar-priced metals also became more attractive for Chinese buyers as the yuan ended Friday at its strongest level against the US currency since mid-2022. Traders await next week's meeting between US President Donald Trump and Chinese leader Xi Jinping.
