Copper rises on strong China demand

Copper prices rose on Tuesday as firm demand from China, the top consumer, pushed the metal back toward its record high, according to Business Recorder. Three-month copper on the London Metal Exchange gained 0.61 per cent to $14,750.5 a metric ton by 0300 GMT, extending a six-session winning streak. In Shanghai, the most-traded contract jumped 1.56 per cent to 111,670 yuan ($16,675.88) a ton, with renewed speculative buying adding support.

The Yangshan copper premium, a measure of Chinese appetite for imported metal, slipped to $119 a ton on Monday but stayed 65 per cent above its level at the start of the month. On Monday, stocks in London Metal Exchange warehouses fell to 133,725 tons, after 9,600 tons of fresh cancellations in Asia. Restocking by Chinese buyers ahead of the September 25 holiday and the October 1 to 7 break is also anticipated.

Traders are watching talks between Donald Trump and Xi Jinping later in the week, which could offer clues on commercial relations. The gains followed a short dip in a larger rally over recent months, which had been fuelled by fears that a prospective levy on refined metal could push more stock into American warehouses. Copper touched a record $14,875 a ton on September 10 amid limited supply outside the United States, then eased after a report indicated the administration had not settled on the levy.