London copper prices edged up on Thursday, buoyed by an uptick in equities and a slight pullback in the US dollar, although dismal demand outlook amid growing recession worries kept gains in check.
Three-month copper on the London Metal Exchange was up 0.2 percent at $8,052 a ton, while the most-traded September copper contract on the Shanghai Futures Exchange lost 0.7 percent to 62,910 yuan ($9,178.72) a ton.
Prices of copper, often used as an indicator of global economic health, have recouped nearly 16 percent from a 20-month low touched in mid-July, but are down 17 percent so far this year.
New orders for US-manufactured capital goods increased in July, but the pace slowed from the prior month, suggesting a moderate rebound in business spending this quarter.
Aluminum producer Speira GmbH is considering cutting production at its German smelter to 50 percent of total capacity in response to surging energy costs, Bloomberg News reported on Wednesday.
Asian share markets were broadly positive while the dollar was slightly weaker, with investors nervously awaiting the US Federal Reserve’s annual Jackson Hole conference for clues on how sharp future interest rate hikes might be.
The global refined copper market showed a 66,000 ton deficit in June, compared with a 30,000 ton deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
LME aluminum was flat at $2,428.50 a ton, zinc added 0.6 percent to $3,533.50 a ton, lead was up 0.6 percent at $1,985 a ton. – Reuters