HANOI- Copper prices rose on Thursday, supported by a softer dollar and expectations of more economic support measures in top consumer China, but rising inventories capped gains.
Three-month copper on the London Metal Exchange (LME) rose 0.1 percent to $9,917.50 per metric ton, while the most-traded August copper contract on the Shanghai Futures Exchange (SHFE) was also 0.1 percent higher at 79,950 yuan ($10,996.19) a ton.
Recent disappointing data in China raised hopes that Beijing will unveil more economic stimulus at a key political meeting over July 15-18.
“The prospect of easing monetary policy (in China) boosted sentiment in the base metals sector. However, signs of weak demand limited the gains,” ANZ analysts said in a note.
LME copper inventories were last at 195,475 tons, the highest since October 2021. Stocks rose the most in warehouses in South Korea and Taiwan, the closest delivery locations for exports from China, a usual net importer.
The LME cash copper contract was trading at a $161.41 a ton discount to the three-month contract, the biggest discount since at least 1982, signaling abundance supply in the near term.
Nickel inventories also climbed in the LME warehouses and were last at 98,088 tons, the highest since January 2022, due to rising production from Indonesia and sluggish consumption.
