Copper Gains as Trade Concerns Ease, Orders Jump Most Since 2015
(Bloomberg) -- Copper rebounded from three straight weekly declines as U.S.-China trade tensions eased and a jump in orders for the metal pointed to stronger demand.
Industrial metals got a lift from improving sentiment on China’s economy and a rise in the yuan. The Asian nation plans to send a delegation to the U.S. later this month, stoking hopes of a revival of trade talks. Meanwhile, orders to withdraw copper from warehouses tracked by the London Metal Exchange climbed the most since 2015 on Monday.
Metal prices plunged last week, sending the LMEX Index to a one-year low, as turmoil fueled by Turkey’s financial woes spread across emerging markets. Currency moves have also set the direction for the market in recent weeks, with the stronger dollar and weaker Chinese yuan leading metal prices lower.
“Copper and industrial metals have been lifted by a general improvement in the sentiment from the depressed levels seen early last week,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “Dollar strength drove the recent sell-off and with those gains now moderating, industrial metals have managed to catch a bid.”
Copper for three-month delivery rose 1.1 percent to settle at $5,991.50 a metric ton at 5:52 p.m. in London, after trading as high as $6,033. The metal fell into a bear market on Aug. 15, closing at a more than one-year low.
On Monday, orders to withdraw the copper came from Singapore and Taiwan. That pushed the so-called canceled warrants 47 percent higher to 36,050 tons.
Tin gained, aluminum advanced the most in more than a week and nickel posted the largest three-day increase since April. Zinc and lead declined.
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