The copper price rose on Monday as low inventory levels provided a cushion after prices fell for three straight weeks due to weaker-than-expected demand in China.
Copper for delivery in July on the Comex market in New York touched $3.95 per pound ($8,690 per tonne), up 1.8% compared to Friday’s closing.
[Click here for an interactive chart of copper prices]
The most-traded June copper contract on the Shanghai Futures Exchange closed up 1.3% at 67,470 yuan ($9,755.50) a tonne.
Copper inventories in Shanghai Futures Exchange warehouses fell to their lowest levels since January 13 to 134,919 tonnes on Friday, equivalent to just over three days of China’s annual demand last year, according to the World Bureau of Metal Statistics.
Copper prices will likely be supported by low stocks, the maintenance of smelters in May, and potentially better demand post the Labour Day holiday as well as the metal becoming cheaper recently, brokerage Huatai Futures said in a report.
(With files from Reuters)
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