Copper prices in London rose on Thursday, backed by China’s improved trade data and property support measures, but gains were capped due to a stronger dollar.
Three-month copper on the London Metal Exchange (LME) was up 0.2 percent at $9,924 per metric ton, aluminum edged up 0.1 percent at $2,552, tin advanced 0.8 percent to $32,265, while nickel was mostly flat at $18,880.
LME zinc eased 0.3 percent to $2,897.50 a ton and lead edged down 0.2 percent to $2,225.50.
The most-traded June copper contract on the Shanghai Futures Exchange (SHFE) eased 0.2 percent to 80,000 yuan ($11,074.35) a ton at the midday break, nickel fell 0.6 percent to 141,940 yuan and zinc edged down 0.2 percent at 23,265 yuan.
SHFE tin fell 0.2 percent to 260,340 yuan a ton, while aluminum rose 0.9 percent to 20,665 yuan, and lead advanced 1.3 percent to 18,120 yuan.
China’s exports and imports returned to growth in April after contracting in the previous month, signaling an encouraging improvement in demand at home and overseas in a boost to a shaky economic recovery.
“That’s one of the reasons … we also have seen more Chinese cities removing home purchase restrictions,” said a trader.
China’s eastern metropolis of Hangzhou, among the country’s most thriving cities, said it will lift all home purchase restrictions to shore up its real estate market, raising the prospect of other cities following suit.
The real estate market accounts for a large volume of metals consumption.
“Metal prices are being influenced by ex-China macroeconomics. Yesterday, the dollar also strengthened,” the trader added.
A firmer dollar makes greenback-priced metals more expensive to holders of other currencies.
