London copper prices advanced on Thursday after the US Federal Reserve signaled no immediate hike in interest rates to sustain a recovery in economic growth and employment.
Three-month copper on the London Metal Exchange was up 1 percent at $9,555.50 a ton, rebounding from two straight sessions of losses.
The most-traded December copper contract on the Shanghai Futures Exchange eased 0.3 percent to 70,190 yuan ($10,978.17) a ton, tracking overnight losses in London.
The Fed said it would trim its massive bond-buying program starting this month, but stay patient and wait for more job growth before raising interest rates.
Copper is often used as a gauge of global economic health due to its widespread application in many sectors. A delay in US rate hikes is likely to sustain growth in the world’s biggest economy.
Fundamental remained supportive for copper amid supply uncertainty and resilient consumption, said Jinrui Futures in a note.
Copper inventories in LME and ShFE warehouses M remained at multi-years low levels, with the LME cash copper trading at a premium of $190 a ton over the three-month contract, indicating tightness of nearby supply.
Meanwhile, Chinese stainless steel futures fell on Thursday as traders anticipated higher production this month after some key producing regions relaxed power curbs.
Planned stainless steel output in November is expected to rise 14.39 percent from a month earlier, analysts with GF Futures wrote in a note, citing data from Mysteel consultancy.
“Jiangsu and Fujian provinces have eased controls on power consumption, capacity at steel mills is gradually recovering,” according to GF Futures.
The most actively traded stainless steel contract on the Shanghai Futures Exchange, for December delivery, was down 1.3 percent at 18,310 yuan ($2,864.47) per ton. — Reuters
