BEIJING- Copper prices rose on Wednesday, supported by supply worries and a soft US dollar, although gains were capped by concerns about demand from top consumer China.
Three-month copper on the London Metal Exchange climbed 0.5 percent to $9,719 per metric ton, while the most-traded July copper contract on the Shanghai Futures Exchange was 0.2 percent higher at 78,680 yuan ($10,843.74) a ton.
Anglo American’s copper output at its Los Bronces mine in Chile is expected to fall nearly a third from average historical levels next year as the miner pauses a processing plant for maintenance, the company’s Chile head said on Tuesday.
Shortages of mined copper have been a reason for a price rally this year. The record high prices have dampened copper consumption in China. And, this week’s disappointing economic data has added to the demand concerns.
A fall in China’s spot demand triggered rare large-scale exports, pushing LME stockpiles higher, ANZ analysts said in a note.
Copper stocks on LME warehouses rose to the highest since January on Monday.
The dollar steadied on Wednesday, nursing losses after soft US retail sales data reinforced bets of imminent Federal Reserve rate cuts.
A softer dollar makes it cheaper to buy the greenback-priced commodity.
Most other metals ticked up. LME nickel added 0.1 percent to $17,310 a ton, aluminum climbed 0.6 percent to $2,502.50, zinc advanced 0.8 percent to $2,859.50 and lead rose 1.7 percent to $2,229, while tin dipped 0.1 percent to $32,110.
