Mixed Movements in Copper Prices
Copper prices in London experienced a slight dip on Friday but are on track for a second consecutive weekly gain. The London Metal Exchange (LME) recorded a 0.2% decrease, placing copper at $8,390.50 per metric ton as of 0724 GMT. Despite this, the metal has seen an overall 1.5% increase for the week. In contrast, the Shanghai Futures Exchange (SHFE) saw its December copper contract rise by 0.4%, closing at 68,260 yuan per metric ton, marking a 0.6% weekly rise.
China’s Economic Stimulus Fuels Optimism
A series of measures by China to rejuvenate its economy has stirred optimism about copper demand. These measures include potential new policies to support the property sector, a significant consumer of copper. Bloomberg News reported that China might permit banks to extend unsecured short-term loans to select property developers, boosting the sector.
Renewable Energy Demand Impacts Copper Inventory
ANZ analysts noted that robust demand from the renewable energy sector has resulted in reduced copper inventories in China. SHFE copper stocks saw a 15.6% increase this week to 35,878 tons but remained near their lowest level in over a year.
Supply Disruptions Add to Market Dynamics
The copper market is also reacting to supply disruptions. The Panama copper mine operated by Canada’s First Quantum Minerals is reportedly not functioning at commercial levels due to protests and blockades at a crucial port.
Currency Fluctuations Influence Market
The strengthening of China’s yuan against the U.S. dollar has lowered the cost of the dollar-priced commodity, spurring import demand. This demand surge is evident in the increase of the Yangshan copper premium .
Other Metals in the Mix
In other metal trading, LME aluminium dipped slightly by 0.1% to $2,222.50 a ton. Tin decreased by 1.5% to $24,110, while zinc edged down by 0.2% to $2,533. Nickel and lead had mixed fortunes, with nickel losing 0.4% to $16,555 and lead gaining 0.1% to $2,216. On the SHFE, aluminium rose 0.1% to 18,815 yuan a ton, zinc climbed 0.8% to 21,115 yuan, and nickel increased by 0.5% to 129,150 yuan. Lead and tin saw decreases, with lead dropping 0.9% to 16,425 yuan and tin falling 2.1% to 199,960 yuan. 
