Shanghai copper prices rose to a nearly three-week high on Thursday, amid hopes of demand pick up fuelled by policy support and peak consumption season coming up in top consumer China.
The most-traded September copper contract on the Shanghai Futures Exchange (SHFE) rose as much as 0.6 percent to 69,490 yuan ($9,553.99) per metric ton, its highest since Aug. 4.
China’s Yangshan copper premium rose to $48 a ton, the highest since July 7, indicating rising demand for imported copper.
Stagnated economic data from the US and Europe eased pressure for monetary tightening and softened the dollar, making commodities traded in the greenback cheaper to holders of other currencies.
“Beijing’s efforts to support its currency triggered a wave of buying across markets earlier this week. This was aided by signs of stronger demand,” said ANZ analysts in a note.
Data from the International Copper Study Group showed firm apparent demand in China in January-June.
Three-month copper on the London Metal Exchange (LME) meanwhile, slipped 0.1 percent to $8,448 ton by 0552 GMT, from its highest since Aug. 10 hit on Wednesday, with a trader attributing the fall to profit taking.
SHFE lead hit a more than 17-month peak of 16,565 yuan a ton, on fear of a shortage of readily available inventory that can be delivered against large short positions.
