BEIJING- Copper prices climbed on Wednesday, as better-than-expected manufacturing activity data from top consumer China buoyed sentiment, while a stronger US dollar and easing supply concerns weighed on the market.
Three-month copper on the London Metal Exchange was up 0.2 percent at $8,980 a ton, extending gains from the previous session.
The most-traded April copper contract on the Shanghai Futures Exchange advanced 1.5 percent to 69,730 yuan ($10,060.16) a ton.
China’s manufacturing activity expanded more than expected in February and marked the fastest pace since April 2012, official data showed, as consumer sentiment gathered momentum on easing of the country’s COVID-19 restrictions.
The dollar began the month on a strong footing as a higher-for-longer US rates scenario took center stage, having recorded its first monthly gain since September.
A stronger dollar makes the greenback-priced metal more expensive to buyers holding other currencies.
Meanwhile, concerns about global supply eased. The Panamanian government and Canada’s First Quantum are nearing an agreement on their negotiations over the contract to operate a major copper mine, Ebrahim Asvat, a lawyer advising the government on the negotiations told Reuters on Tuesday. – Reuters
