Copper prices climbed across major exchanges on Tuesday, supported by a weaker dollar and tighter inventories globally.
Three-month copper on the London Metal Exchange was up 0.33% at $9,948 per metric ton, as of 0228 GMT, while the most-traded copper contract on the Shanghai Futures Exchange edged 0.06% higher to 79,780 yuan ($11,200.02) a ton.
The dollar index, which measures the US currency against six major peers, weakened to an almost seven-week low as dismal US jobs data strengthened the case for Federal Reserve rate cuts.
A softer dollar makes greenback-denominated assets more affordable to holders of other currencies, while lower interest rates improve prospects for growth-dependent metals.
Coupled with increased smelter maintenance in September and the gradual onset of the peak consumption season, low domestic inventories continue to provide strong support for copper prices, said Chinese data provider Shanghai Metal Network.
Still, elevated copper prices are creating caution in downstream markets, resulting in subdued purchasing activity, according to Chinese broker Everbright Futures.
China’s imports of copper concentrate increased for a second consecutive month in August, boosted by higher exports from a major Indonesian mine, which aims to ship up to 90% of its 1.27 million ton quota by September 16.
Copper inventories in LME-registered warehouses dipped to 155,825 tons.
Among other London metals, aluminium rose 0.17% to $2,622 a ton, nickel edged 0.04% higher to $15,235, tin gained 0.26% to $34,350, and zinc climbed 0.16% to $2,881, while lead eased 0.03% to $1,991.5.
SHFE aluminium rose 0.31% to 20,775 yuan, lead increased 0.18% to 16,920 yuan, and zinc edged 0.04% higher to 22,255 yuan, while nickel dipped 0.32% to 121,120 yuan and tin lost 0.34% to 270,190 yuan.
