Copper Rises as Global Economic Data Rebounds
Sudan Events – Agencies
Copper prices rose on Friday after US jobs data eased concerns about slowing growth in the United States US ,while falling stockpiles in top consumer China boosted positive sentiment.
The benchmark copper price on the London Metal Exchange rose 1.4 % to $8,921 a tonne in official trading, after hitting a four-and-a-half-month low of $8,714 earlier this week, amid concerns about the potential contagion effects of a US recession, according to Reuters.
Data showed on Thursday that the number of Americans filing new claims for unemployment benefits fell more than expected last week, suggesting that concerns about the labor market were overblown.
Traders said inflation data showing China had pulled back from deflation also supported the improvement in sentiment across stock and commodity markets.
“The US jobs data has supported sentiment and copper is following stocks,” said one metals trader, adding that lower stocks in warehouses monitored by the Shanghai Metals Exchange (ShFE) also provided support.
ShFE copper stocks have fallen 15 % over the past two months to 286,305 tonnes.
Hopes of a recovery in Chinese copper consumption have boosted the Yangshan premium, a closely watched gauge of Chinese import appetite, which rose to around $55 a tonne this week, its highest since March.
“The lower prices have led to a revival in Chinese demand, with wire and cable companies reporting a pick-up in orders, but this remains muted,” said Macquarie analysts.
Traders are awaiting July data on new yuan-denominated loans and total social financing in China, which are seen as a gauge of future demand for industrial metals.
Both are due over the next few days.
Elsewhere, tin jumped 4.1 percent to $31,750 a tonne, having hit a three-week high of $32,050.
Zinc prices rose 3.4 percent to $2,736 a tonne, their highest since July 23, gaining momentum after a sustained break above the 200-day moving average around $2,660. Lead rose 3.2 % to $2,028.
One trader said the buying was driven by expectations of higher energy costs, which account for about 50 % of zinc production costs.
Elsewhere, aluminium rose 1.9 % to $2,318 a tonne, while nickel gained 1.2 % to $16,345.
