Copper prices rose across major exchanges on Tuesday, supported by robust Chinese demand, even as trade war worries and a firmer dollar weighed on broader sentiment.
Three-month copper on the London Metal Exchange was up 0.44 percent at $9,927 per metric ton, as of 0214 GMT, while the most-traded copper contract on the Shanghai Futures Exchange gained 0.25 percent to 79,910 yuan ($11,171.69) a ton.
Despite concerns that the trade war would weigh on copper consumption, as well as expectations of falling prices after the US refrained from imposing import tariffs on refined metal, copper demand has proven resilient, supported by strong activity in China, said analysts from ANZ.
Analysts from ING noted that the upcoming US jobs report this Friday will be the focus for the market, with expectations of a weakening labour market reinforcing the case for potential rate cuts.
Broadly, a private PMI survey showed that China’s factory activity in August expanded at the quickest pace in five months on the back of rising new orders.
Still, the dollar index, which measures the US currency against six major peers, was last up 0.1 percent at 97.709.
A firmer dollar makes greenback-denominated assets less affordable to holders of other currencies.
Among other London metals, aluminum climbed 0.42 percent to $2,622 a ton, and zinc rose 0.42 percent to $2,844.5, while nickel dipped 0.09 percent to $15,425, lead fell 0.17 percent to $2,000, and tin eased 0.16 percent to $34,895.
SHFE aluminum rose 0.22 percent to 20,715 yuan, nickel gained 0.23 percent to 123,050 yuan, lead edged 0.03 percent higher to 16,845 yuan, tin strengthened 0.02 percent to 273,820 yuan, and zinc climbed 0.11 percent to 22,220 yuan.
