HANOI- Copper prices rose on Tuesday on the continued momentum of the US interest rate cut last week and improving demand in top consumer China, supported by stimulus and rising seasonal consumption.

Three-month copper on the London Metal Exchange was up 1.5 percent  at $9,687 per metric ton, after hitting its highest since July 17 at $9,700 earlier in the session.

The most-traded October copper contract on the Shanghai Futures Exchange closed up 1.8 percent  at 76,760 yuan ($10,908.52) a ton. It hit 76,780 yuan, the highest since July 19, earlier in the session.

China’s copper consumption is usually stronger between late September and December.

“Demand in the past several weeks has been good. Wire rod production in September was quite good because the price was low,” said CRU analyst He Tianyu, pointing to strong home appliances and electric vehicles output, and increasing grid investment.

“(But) people are still not sure whether the peak season has come because copper price has bounced back recently,” he added.

“SHFE inventory has been declining quite sharply. I expect copper demand and price to improve in the fourth quarter.”

SHFE copper inventories were last at 164,938 tons, the lowest since Feb. 8.

China’s central bank announced broad monetary stimulus and property market support measures on Tuesday. The country has provided supportive policies for home appliances and electric vehicles.