Copper prices in London rose on Thursday, buoyed by a weakening dollar and hopes of a pick-up in metals demand from a $2 trillion infrastructure proposal in the United States.
Three-month copper on the LME rose 0.8% to $8,989 a tonne, as the dollar hovered near a more than two-week low, making greenback-priced metals more attractive to holders of other currencies.
U.S. President Joe Biden is expected to meet with lawmakers in coming weeks on his proposed infrastructure bill, which is expected boost demand for industrial metals.
Meanwhile, the most-traded May copper contract on the Shanghai Futures Exchange closed down 0.4% at 66,850 yuan ($10,207.98) a tonne, having dropped to 66,310 yuan a tonne earlier in the session, its lowest level since Apr. 2.
The Yangshan copper premium dropped to $54 a tonne, its lowest since Nov. 27, indicating weakening demand for imported metal from top consumer China.
Copper inventories in warehouses approved by the London Metal Exchange climbed to 150,325 tonnes, their highest since Nov. 26, while ShFE stockpiles were last at 188,359 tonnes, their highest since Sept. 18.
Sentiment has been dampened by signs that the Chinese government is looking to quell asset bubbles, ANZ analysts said in a note.
“Nevertheless, any weakness in China could be mitigated by strong growth in the United States,” the analysts said, adding that the infrastructure plan should see demand for industrial metals, such as copper, rise strongly.
FUNDAMENTALS
* LME aluminum rose 0.6% to $2,273.50 a tonne, zinc rose % to $2,860.50 a tonne, and lead was down 0.1% at $1,991.50 a tonne.
* ShFE nickel rose 0.9% to 126,690 yuan a tonne and tin dropped 1% to 183,100 yuan a tonne, while zinc advanced 0.8% to 22,020 yuan a tonne.
