Copper jumps to approach one-month high on China hopes

Copper prices jumped on Monday to the highest in nearly a month after top metals consumer China said it would take more action to boost its lethargic economy.

The three-month copper contract on the London Metal Exchange (LME) CMCU3 gained 1% to $9,215 per metric ton in official open-outcry tradingafter touching $9,241, the highest since Nov. 12.

U.S. Comex copper futures HGc2 climbed 1.7% to $4.23 a lb.

Copper had been slightly weaker ahead of the announcement by the Chinese Politburo that it had shifted its monetary policy stance to imply more easing is coming.

“It highlights that the Chinese economy has been on the back foot for a while and clearly needs some additional support. The market liked the prospects for that,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

“These are words so the question is how much action will be provided before they have an understanding of how the (potential U.S.) tariffs will impact their economy.”

U.S. President-elect Trump has pledged to impose additional 10% tariffs on imports from China while investors have been disappointed about the lack of aggressive fiscal stimulus measures by China.

Ahead of the announcement, the market was weighed down by data showing persistent disinflationary pressures in China.

The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 0.3% to 74,740 yuan ($10,269.30).

Among other metals, LME aluminium CMAL3 dipped 0.3% in official activity to $2,596 a ton and nickel CMNI3 eased 0.6% to $15,945, while zinc CMZN3 climbed 2% to $3,132.50, lead CMPB3 rose 0.9% to $2,091 and tin CMSN3 added 0.2% to $29,205.
Source: Reuters (Reporting by Eric Onstad; Editing by Bernadette Baum and Shailesh Kuber)