BEIJING- Prices of copper in Shanghai hit a two-week peak on Tuesday, supported by thin inventories in the world’s top consumer, while further gains were capped by demand uncertainty.
The most-traded June copper contract on the Shanghai Futures Exchange ticked up 0.5 percent to 67,370 yuan ($9,746.68) a tons, extending gains from the previous session. The contract was at its highest level since April 25.
Inventories of the metal in SHFE warehouses were at a near four-month low. That coupled with expectations of slower domestic output growth in the following months due to smelters’ regular maintenance.
Also weighing on the sentiment was a hazy demand outlook as copper consumption in China from power, property and transportation has yet to show any strong recovery.
The dollar inched higher on Tuesday after a loans survey revealed that credit conditions in the United States were less gloomy than expected, while the pound flirted with a one-year peak ahead of this week’s Bank of England policy meeting.
A stronger dollar makes it less attractive for non-dollar holders to buy the greenback-priced commodity. – Reuters
