Copper rises on Chinese demand recovery hopes

By Mai Nguyen

Copper prices rose on Monday as investors and traders bet on a recovery in demand from top consumer China amid support from global mining supply disruptions.

Three-month copper on the London Metal Exchange advanced 0.4% to $9,020 a tonne by 0433 GMT, aluminium increased 1.3% to $2,418 a tonne, zinc was up 0.5% at $3,073.50 a tonne and tin rose 1.6% to $26,270 a tonne.

LME lead declined 0.2% to $2,062 a tonne.

The most-traded March copper contract on the Shanghai Futures Exchange was up 0.2% at 69,100 yuan a tonne, aluminium increased 1.4% to 18,780 yuan a tonne, zinc climbed 2% to 23,315 yuan a tonne and lead was up 0.3% at 15,165 yuan a tonne.

SHFE tin fell 1.8% to 210,050 yuan a tonne and nickel shed 1% to 202,780 yuan a tonne.

Metals prices were moving in tandem with the China and Hong Kong stock markets, where risk appetite improved on hopes of the economy gradually shifting from reopening to recovery.

"Signs of stronger demand boosted sentiment," said ANZ analysts in a note.

Copper inventories build-up in SHFE warehouses slowed, with the weekly gain on Friday at the smallest in nearly two months.

LME copper also posted its first weekly gain in four weeks on Friday.

Analysts have forecast Chinese copper consumption will rebound strongly in March.

New home sales in 16 Chinese cities rose for the third straight week, a private survey showed, as the end of Beijing's zero-COVID policy and more support measures stabilised demand.

Production and export disruptions in mining countries like Peru, Indonesia and Panama have also lent support to copper prices.

However, a firmer dollar, which makes greenback-priced metals more expensive to holders of other currencies, kept a lid on further gains in prices.

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