Copper rallied from the lowest level in more than a week as Chinese users bought the metal to replenish stockpiles ahead of a week-long holiday.
The metal for delivery in three months climbed as much as 0.8 percent to $8,244 a metric ton on the London Metal Exchange before trading at $8,225 by 2:27 p.m. in Shanghai. December futures rose 0.4 percent to $3.7445 a pound on the Comex.
“There is a bit of stockpiling need ahead of the long holiday next week,” said Fang Junfeng, an analyst at Shanghai CIFCO Futures Co. “Copper seems to be capped in range-bound trade with China and Europe being the main downside risks and a global deficit this year underpinning prices.”
Markets in China will be closed next week for the National Day holiday. A leading index for China’s economy rose 1.7 percent in August from July to 240.4, the biggest rise in seven months, the Conference Board, a New York-based research group, said in a statement today, citing a preliminary reading. That compared with a revised 0.6 percent gain in the previous month.
Copper stockpiles in bonded warehouses in Shanghai are about 650,000 tons, according to the median estimates from nine traders, analysts and warehouse managers, with five saying the current level is a record. The January-delivery contract rose 0.3 percent to 59,230 yuan ($9,397) a ton on the Shanghai Futures Exchange.
Aluminum, tin and nickel gained in London, while zinc declined and lead was little changed.