BEIJING- Copper prices rose on Monday with support from robust demand in top consumer China despite a firmer US dollar amid violence in the Middle East.
Three-month copper on the London Metal Exchange was up 1.2 percent at $8,139 per metric ton after losing 2.7 percent in the prior week.
Demand for copper and aluminum in China has been surprisingly robust despite the country’s property sector crisis, driven by orders from the home appliance, electric vehicle, solar and wind sectors.
The International Copper Study Group (ICSG) forecast a market balance for copper this year, unlike a generally expected surplus. But it eyed a major supply surplus next year.
China’s markets reopened after a week-long public holiday on Monday.
The most-traded November copper contract on the Shanghai Futures Exchange added 0.2 percent to 67,330 yuan ($9,236.32)per ton.
Violence in the Middle East sent the safe-haven dollar higher, making it more expensive for non-dollar holders to buy the greenback-priced commodity.
Meanwhile, data last Friday showed US employment increased by the most in eight months in September as hiring rose broadly, pointing to persistent labor market strength that could give the Fed ammunition to raise interest rates again, though wage growth is slowing. – Reuters
