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Prices for copper and most other base metals rose in London on Wednesday as demand prospects from top consumer China improved and the market shrugged off pressure from a strong U.S. dollar.
Three-month copper on the London Metal Exchange CMCU3 was up 0.5% at $8,404per ton in official open-outcry trading.
“Copper prices trade higher for a fifth straight session helped by surprisingly upbeat copper consumption data in China, speculation about more support measures from the Chinese government and the currency intervention which has seen the yuan strengthen against the dollar,” Ole Hansen, head of commodity strategy at Saxo Bank, said.
Providing further support for copper, used in power and construction, stockpiles monitored by the three major futures exchanges are just above a 15-year low at 170,000 tons, he added.
Meanwhile, the downturn in euro zone business activity has deepened more than expected this month in a broad-based fall across the region, particularly in Germany, Europe’s largest economy, a survey showed.
The euro fell to a more than two-month low against the dollar, and the dollar index rose to its highest level since June 8 against six major currencies.
A stronger U.S. currency makes dollar-priced metals more expensive for buyers holding other currencies.
On the technical front, copper faces resistance at the 21-day moving average at $8,433.
LME aluminium gained 0.1% to $2,178 a ton in official activity, zinc CMZN3 rose 0.8% to $2,350, lead CMPB3 increased 1.1% to $2,177, nickel climbed 1.2% to $20,750, while tin CMSN3 slid 1.3% to $25,775.
Prices of nickel ore in top global producer Indonesia have risen by 10% in recent weeks, local buyerssaid, after an investigation into mining quotas disrupted production.