Copper edges higher, finding support in China's rising factory activity
CPER•Copper prices edged higher after China's official manufacturing PMI rose to 50.1 in September from 49.8 in August, while a private survey showed a five-month high of 52.1. Trading was subdued ahead of China's National Day holiday.
1. Copper prices rise
Three-month copper on the London Metal Exchange rose 0.23% to $14,471 a metric ton, while the most-traded November Shanghai contract gained 0.21% to 109,530 yuan a ton. The Shanghai contract was set to end a holiday-shortened week down 0.52%.
2. China activity expands
China's official manufacturing purchasing managers' index rose to 50.1 in September from 49.8 in August. A private RatingDog survey's PMI climbed to 52.1 from 51.5, a five-month high.
3. Holiday dampens trade
Trading was subdued ahead of the National Day holiday, with the Shanghai Futures Exchange closing from Thursday and reopening October 8. Physical copper demand eased, and the domestic premium weakened to 1,050 yuan a ton, while the Yangshan copper premium rose slightly to $119 a ton. A firm dollar, higher U.S. yields and oil above $100 a barrel also featured in the market backdrop.
