Copper prices in London rose to near the $10,000 per metric ton level on Monday as market participants looked for further signs of demand following a rally sparked by Chinese stimulus.
Three-month copper on the London Metal Exchange (LME) rose 0.4 percent to $9,985.50 per tonne, aluminum rose 0.5 percent to $2,666 and zinc rose 0.1 percent. percent to $3,170.
LME lead rose 0.6 percent to $2,161.50 a tonne, tin rose 0.2 percent to $33,875, while nickel fell 0.8 percent to $17,840.
Copper prices have been trading around $10,000 a tonne, a key resistance level, as participants in top consumer China are on holiday and trading volume has been thin as a result.
A flurry of Chinese stimulus announced in late September has sent the entire base metals complex higher, with LME copper rising 6.4 percent last month in its best monthly gain since April.
However, as prices approached the $10,000 level, some market participants waited for China’s markets to reopen to see if physical demand was intact.
“Sentiment was particularly upbeat among Chinese attendees at LME Week in London. This contrasted with the relatively bearish sentiment among most of their Western counterparts,” ANZ analysts said in a note, referring to the annual gathering of LME Week participants. metals industry in London during the week. on September 30.
“This opens the prospect of further gains when Chinese markets reopen on Tuesday after the Golden Week holiday (October 1-7). Any sustained recovery will likely depend on more concrete details of the fiscal stimulus measure promised by Beijing.” .
LME copper inventories have been declining slightly since September, but are still almost three times the level seen in May.
The LME spot copper contract was trading at a discount of $147.09 per tonne to the three-month contract on Friday, suggesting ample near-term supplies.
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