Base Metal Prices Climb as Copper and Aluminum See Gains

Base metal prices saw an uptick, with copper increasing by 1.4% to reach $8,995 per ton and aluminum rising by 1.2% to $2,323 per ton. Copper prices have bounced back after hitting a five-month low last week, which was attributed to rising inventories in London Metal Exchange warehouses and increased exports from China amid sluggish domestic demand, according to analysts at SP Angel.

This price rally comes as Shanghai copper stocks have dropped by 15% over the last six weeks. SP Angel analysts suggest that Chinese buyers are taking advantage of copper's recent decline from record highs to purchase the metal at more favorable prices.

Additionally, recent figures from the Chilean copper commission indicate a 7.9% month-on-month decrease in copper production by state-owned Codelco, contributing to the upward pressure on prices, as noted by ING analysts.