NEW DELHI- Copper prices rose marginally on Wednesday, lifted by a weaker US dollar, although a possible surge in COVID-19 infections in Beijing posed short-term risks and kept gains in check.
Three-month copper on the London Metal Exchange was up 0.08 percent at $8,504 a ton, after having hit its highest since June 23, at $8,629, in the previous trading session.
The most-traded January copper contract on the Shanghai Futures Exchange was up 0.65 percent at 66,340 yuan ($9,532.43) a ton.
The dollar weakened after data showed US consumer price inflation rose less than expected last month, strengthening the view that the Federal Reserve will slow its pace of rate hikes after its two-day meeting on Wednesday.
“(A) weakening USD is another tailwind at the moment,” said Soni Kumari, a commodity strategist at ANZ Research.
Meanwhile, a week after China began dismantling its tough zero-COVID controls, the World Health Organization warned of “very tough” times ahead and state media reported on seriously ill patients at hospitals in Beijing, raising fears of a wave of infections.
“We remain cautious as this surprised reopening during winter could lead to rapid spread of infections through households and offices,” Kumari said, adding that this remained a short-term risk for recovery in industrial activity.
“Falling copper spot premium still suggests weaker demand.”
Among other metals, LME aluminum was down 0.24 percent at $2,455 a ton, while zinc was down 0.05 percent at $3,317, and lead weakened 0.7 percent to $2,190.
SHFE aluminum rose 0.4 percent to 18,775 yuan a ton, tin climbed 0.62 percent to 195,400 yuan, zinc dipped 0.4 percent to 24,785 yuan, nickel fell 2.05 percent to 218,060 yuan, while lead was down 0.45 percent to 15,545 yuan.
