Copper edges higher, finding support in China's rising factory activity
RING•Copper prices edged higher as Chinese factory activity returned to growth in September. LME copper rose 0.23% to $14,471 a metric ton, while Shanghai copper gained 0.21% to 109,530 yuan a ton.
1. Factory activity expands
China's official manufacturing PMI rose to 50.1 in September from 49.8 in August. A private RatingDog survey showed its PMI climbing to a five-month high of 52.1 from 51.5.
2. Holiday tempers trading
Trading was subdued ahead of China's week-long National Day holiday, and physical copper demand eased. The domestic premium weakened to 1,050 yuan a ton, while the Yangshan copper premium rose slightly to $119 a ton.
3. Dollar remains firm
The US dollar was heading for a roughly 2% monthly rise, supported by higher US yields. Brent crude hovered above $100 a barrel, keeping inflation concerns and expectations of another US Federal Reserve rate hike alive.
