Copper climbs on China factory data, heads for third-straight monthly gain
RING•Copper rose 0.2% to $14,465 per metric ton and was on course for a 1.2% monthly gain after Chinese factory activity returned to growth. Shanghai copper warehouse stocks fell 17.8% from the previous week to 38,744 tons.
1. Copper advances
Benchmark three-month copper on the London Metal Exchange rose 0.2% to $14,465 per metric ton and was set for a third consecutive monthly gain of around 1.2%. It gained around 8.2% in the third quarter after reaching a record $14,875 on September 10.
2. China factory activity
China's official manufacturing PMI rose to 50.1 in September from 49.8 in August, while the RatingDog survey's measure increased to a five-month high of 52.1 from 51.5. Copper stocks in Shanghai Futures Exchange warehouses fell 17.8% from the previous week to 38,744 tons, their lowest level since January 2024. The exchange was scheduled to close for China's National Day holiday and reopen on October 8.
3. Market outlook
ING commodities strategist Ewa Manthey said expectations of a relatively tight market balance over coming quarters were supporting copper. She said structural demand trends and constrained supply growth should help keep prices well supported through the fourth quarter, while uncertainty around global growth and trade policy remained a consideration.
