Copper rallies as Chinese buyers return to the market
CPER•Other base metals
Elsewhere, zinc CMZN3 climbed 1.2% to $3,857 a ton after reports of an industrial accident at Korea Zinc's 010130.KS Onsan smelter raised concerns about supply.
In other metals, aluminium rose 0.5% to $3,286, lead gained 0.8% to $1,900, tin CMSN3 advanced 1% to $52,930 and nickel CMNI3 added 1% to $16,335.
Copper rises as Chinese buying returns
Copper prices rallied on Thursday as Chinese buyers returned to the market after a recent selloff, demand prospects brightened and the market brushed off a US interest-rate hike.
Benchmark copper CMCU3 on the London Metal Exchange rose 1% to $14,382 a metric ton at 1044 GMT. Prices of the metal used in the power and construction industries have dropped 4% since hitting a record high of $14,875 a ton on September 10.
Demand signals and broader metals moves
The dollar rose after the US Federal Reserve raised interest rates and reaffirmed its commitment to curbing inflation.
Industrial metal prices slipped as a rising US currency makes dollar-priced metals more expensive for holders of other currencies, weighing on demand.
But Chinese buyers are back though volumes are not "massive", said Alastair Munro, senior base metals strategist at Marex. He said Chinese demand was real physical buying, not just speculation.
Strong physical demand in the top consumer can be seen in the Yangshan copper premium SMM-CUYP-CN, a gauge of Chinese demand for copper imports, which rose to $118 a ton on Wednesday, its highest since October 2022.
It is also reflected in higher domestic physical market premiums SMM-CU-PND, paid over the prices traded on the Shanghai Futures Exchange, which climbed to 645 yuan a ton on Wednesday, its highest since December 2023.
