Copper prices edged higher on Wednesday, supported by signs of recovery in Chinese factory activity, positioning the metal for its third consecutive monthly gain. Benchmark three-month copper on the London Metal Exchange climbed 0.1 percent to USD 14,453 per metric ton in official open outcry activity, with the contract on course for a monthly rise of approximately 1.1 percent. The metal has posted gains of 8 percent during the third quarter after hitting a record high of USD 14,875 on September 10, according to data from the London Metal Exchange.
China's manufacturing sector showed signs of improvement in September, with the official purchasing managers' index rising to 50.1 from 49.8 in August, signaling a return to expansion territory. A private RatingDog survey painted an even more optimistic picture, with its PMI measure climbing to a five-month high of 52.1 from 51.5 in the previous month. However, trading activity remained subdued as market participants prepared for China's National Day holiday, which will keep the Shanghai Futures Exchange closed from Thursday through October 7, reopening on October 8.
Copper stocks in Shanghai Futures Exchange warehouses continued their decline as pre-holiday demand persisted. Inventories fell 17.8 percent from the previous week to 38,744 tons, marking the lowest level since January 2024. This drawdown reflects sustained consumption ahead of the extended shutdown.
According to ING commodities strategist Ewa Manthey, copper is finding support from expectations of a relatively tight market balance in the coming quarters. She noted that while uncertainty around global growth and trade policy remains a consideration, structural demand trends and constrained supply growth should help maintain price support through the fourth quarter. Physical copper premiums in China have shown mixed signals.
The domestic premium slipped from the previous week's peak of 1,375 yuan, equivalent to USD 205 per ton, to 1,050 yuan per ton. Conversely, the Yangshan premium, which serves as a gauge of appetite for imported copper, rose slightly to USD 119 per ton. The broader London Metal Exchange complex presented a mixed picture on the day.
Nickel advanced 0.6 percent to USD 16,050 per ton while tin added 0.2 percent to USD 54,530 per ton. However, aluminium retreated 0.2 percent to USD 3,208, hitting its lowest point since August 25. Zinc declined 0.8 percent to USD 3,840 per ton and lead lost 0.5 percent to USD 1,889.50, touching its weakest level since September 17, according to London Metal Exchange data.
Source: brecorder.com