BEIJING- Copper prices rose on the first trading day in the second half this year, buoyed by better investor sentiment, while increased supplies and demand concerns weighed on the market.
Three-month copper on the London Metal Exchange was up 0.6 percent to $8,365 per metric ton, rebounding from a quarterly drop.
The most-traded August copper contract on the Shanghai Futures Exchange (SHFE) rose 1.8 percent to 68,320 yuan ($9,432.16) per metric ton.
The gains came against better stock performance, including gains posted by the CSI 300 Real Estate Index and the Hang Seng mainland property index
Data released last week about a third monthly contraction of China’s factory activity strengthened hopes for fresh stimulus.
Property is a major demand driver for industrial metals.
Other metals on SHFE also trended up. Aluminum was up 0.2 percent to 18,025 yuan a metric ton, zinc climbed 1.3 percent at 20,190 yuan, lead added 1.2 percent to 15,615 yuan, nickel moved 2.3 percent up to 160,780 yuan, and tin jumped 4.5 percent at 226,700 yuan.
However, analysts warned the near-term demand outlook for copper used in power, construction and transportation sectors remained subdued amid a decline in some copper users’ operation rates. – Reuters
