BEIJING- London copper traded in a tight range on Thursday as investors weighed rising inventories and a gloomy demand outlook against support from a weaker US dollar.
Three-month copper on the London Metal Exchange was little changed at $8,420.50 per metric ton, while the most-traded October copper contract on the Shanghai Futures Exchange rose 0.3 percent to 69,290 yuan ($9,526.62) per ton.
Copper stocks in LME warehouses jumped 7,750 tons on Wednesday.
The higher inventories, which were near a two-year peak, raised concerns of weak demand, analysts at ANZ said in a note.
September normally sees strong demand as industrial activities pick up after a summer lull. However, Chinese market participants said demand had remained flat this time amid a patchy economic recovery.
Premiums for copper traded in the Chinese spot market fell below 20 yuan a ton this week, from 320 yuan in the beginning of this month
Some copper users will start procurement with the Golden Week holiday in October approaching. That, together with tight supply of recycled copper, will lend some supports to prices, according to a report by Guotai Junan Futures.
