Shanghai copper prices rose on Monday as low inventory levels provided a cushion after prices fell for three straight weeks due to weaker-than-expected demand in China.
The most-traded June copper contract on the Shanghai Futures Exchange was up 0.8 percent to 67,120 yuan ($9,706.44) a tons, aluminum advanced 0.4 percent to 18,390 yuan a tons and nickel rose 0.3 percent to 183,870 yuan a tons.
SHFE zinc increased 1.6 percent to 21,485 yuan a tons, tin was 0.4 percent higher at 207,630 yuan a tons, while lead fell 0.2 percent to 15,285 yuan a tons.
Copper inventories in SHFE warehouses fell to their lowest levels since Jan. 13 to 134,919 tons on Friday, equivalent to over three days of China’s annual demand last year, data by the World Bureau of Metal Statistics showed.
Copper prices will likely be supported by low stocks, the maintenance of smelters in May, potentially better demand post the Labor Day holiday as well as the metal becoming cheaper in the past few weeks, brokerage Huatai Futures said in a report.
SHFE copper prices have lost 4.8 percent since April 17, while the three-month copper contract on the London Metal Exchange was down 6.6 percent since April 14. – Reuters
