Base metal prices in London rose on Thursday, with copper hitting its highest level in more than 14 months, supported by a softer dollar, output cut plans from Chinese firms and optimism around recent data in the country.
Three-month copper on the London Metal Exchange (LME) was up 0.8 percent at $9,339.50 per metric ton. The contract leapt to as much as $9,380 earlier in the session, a level last seen on Jan. 27, 2023.
The dollar fell as investors waited on US labor data for clues on the Federal Reserve’s interest rate outlook. A weaker dollar makes greenback-priced metals cheaper to holders of holders of other currencies.
Prices were also supported by Fed Chair Jerome Powell’s affirmation that his outlook on lowering the policy rate at some point this year remained the same and will continue to be guided by economic data.
China’s stronger-than-expected manufacturing data released earlier this week also boost optimism around the metal demand outlook in the world’s biggest consumer of metals.
Prices of copper price have especially been aided by output cut plans by Chinese smelters amid a shortage of raw materials.
LME aluminum advanced 0.7 percent to $2,446, nickel increased 0.3 percent to $17,385, zinc rose 0.9 percent to $2,570, lead advanced 0.6 percent to $2,095 a ton and tin climbed 1.1 percent to $28,695.
