BEIJING- Copper rose on Monday, underpinned by investors’ hope for Fed rate cuts and rising demand in top consumer China and as supply disruptions lent support.
Three-month copper on the London Metal Exchange was up 0.6 percent at $10,060 per metric ton, while the most-traded June copper contract on the Shanghai Futures Exchange advanced 1 percent to 81,050 yuan ($11,204.19) a ton.
After a softer-than-expected US payrolls report for April and a Federal Reserve policy announcement, expectations have risen for rate cuts this year, with market participants awaiting US inflation data to assess the prospects of rate cuts.
China’s consumer prices rose for a third straight month in April, while producer prices extended declines, signaling an improvement in domestic demand, as Beijing navigates challenges in its bid to shore up a shaky economy.
However, new bank lending in China fell more than expected in April from the previous month and broad credit growth hit a record low, the central bank revealed on Saturday, raising the prospect of more action to support the economy.
Meanwhile, copper remained underpinned by a growing supply deficit that is likely to worsen if prices don’t rise enough to incentivize new mines, said ANZ research analysts.
