Copper prices rose on Thursday as China’s supportive measures for its property sector, a weaker US dollar and the prospect of the Federal Reserve slowing its pace of interest rate hikes boost sentiment.
Three-month copper on the London Metal Exchange was up 0.9 percent at $8,079.50 a ton, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.3 percent to 65,130 yuan ($9,117.76) a ton.
“Metals are higher from Chinese bank’s pledge for loans and interest-free terms to other banks for re-lending to developers,” a Singapore-based metals trader said.
“There’s definitely more upside in the near-term … low inventories and any small catalyst from China policy change will help push metals higher.”
Three of China’s biggest commercial banks have agreed to provide fundraising support to property developers, including industry giant Vanke, in a coordinated effort to support the country’s embattled property sector. The sector, which consumes a vast amount of metals, makes up about a quarter of China’s economy.
Meanwhile, the Fed minutes of its latest meeting showed a “substantial majority” of policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes.
