LONDON – Copper prices hit their biggest weekly growth since late July after data from top metals consumer China showed signs that its ecomomy was stabilising0.
Three-month copper on the London Metal Exchange (LME) was down 0.1 percent at $8,408 per metric ton, after touching its highest since Sept. 4 at $8,507.50. It rose 2 percent from a week ago.
China’s factory output and retail sales grew at a faster pace in August, though tumbling investment in the crisis-hit property sector threatens to undercut a flurry of support measures.
“The figures are likely to have a net positive effect on base metals prices given that they should further allay fears that the momentum of growth in China, the largest consumer, could continue to slow,” Commerzbank analyst Thu Lan Nguyen said in a note.
“That said, no pronounced price rally can be expected until the real estate market shows clearer signs of recovering.”
The economic data helped the yuan to strengthen against its US counterpart, making dollar-priced metals more attractive for Chinese buyers.
The dollar was slightly weaker after hitting its six-month high on Thursday. – Reuters
