Copper rebounds on firmer risk sentiment and tight supply in China
XLB•Copper rose 0.6% to $13,853 a metric ton in LME official trading as risk sentiment improved, supply in China remained tight and the dollar weakened. The Yangshan copper premium reached a record $230 a ton.
1. Copper prices rebound
Copper prices recouped some of last week’s losses on Monday. Three-month LME copper rose 0.6% to $13,853 a metric ton in official trading after falling 2.7% last week, its steepest weekly decline since March.
2. China supply stays tight
The Yangshan copper premium, a gauge of demand for imported copper in China, rose to a record $230 a ton. ING commodities strategist Ewa Manthey said rising spot premiums showed that metal remained difficult to secure. The most-traded copper contract on the Shanghai Futures Exchange gained 0.5% to 107,430 yuan a ton.
3. Caution over gains
Manthey said Monday’s move did not necessarily mark the end of the correction and that prices remained vulnerable if broader market sentiment deteriorated. LME aluminium slipped 0.1% to $3,059 a ton; Citi said low visible inventories and geopolitical risks supported prices near term, while Indonesian-led supply growth and muted demand challenged next year’s outlook.
