Copper set for weekly gain as China demand offsets US policy pressure

Business Recorder reported that copper was on course to finish the week in positive territory on Friday. By 0331 GMT, the three-month LME price was down 0.2% at $14,467.50 a metric ton, though the metal was still heading for a weekly rise near 1.6%. Shanghai's most-traded contract, meanwhile, climbed by 1.3%, reaching 109,500 yuan ($16,348.90) a ton.

Chinese buyers have been the main support, with physical purchasing firming after copper pulled back from record levels last week. Premiums told a similar story: the Yangshan premium, a measure of Chinese appetite for imports, reached $121 a ton on Thursday, its strongest level since October 2022. That marks a steep rise from $85 recorded at the close of the previous week. Domestic premiums also stayed elevated, with 630 yuan a ton paid over SHFE copper on Thursday, down slightly from 645 yuan a day earlier.

Washington has not yet settled whether to levy duties on refined copper, according to Reuters reporting from the previous week. Meanwhile the Federal Reserve lifted its policy rate by a quarter point and signalled one more increase later in the year. Crude also helped, with oil prices dropping for a third straight session as worries over Saudi supply disruptions eased, although Brent stayed above $100 a barrel. Among other base metals, aluminium fell 0.4% while zinc gained 0.2%.