Copper nudges up, set for weekly gain on China tightness

Business Recorder reported that copper prices edged higher on Friday and were on track for a weekly gain after a volatile week shaped by tight supply in China. The three-month contract on the London Metal Exchange, the main benchmark, rose 0.08% to $14,632 per metric ton as of 0300 GMT. Compared with last week's close, the contract is up 0.76%, although a stronger dollar and inflation concerns had earlier pared some of the week's gains.

David Wilson, head of metals strategy at BNP Paribas, said visible inventories in China have dropped considerably while smelters are scaling back output for maintenance, leaving the Chinese market quite tight. Inventories in warehouses tracked by the Shanghai Futures Exchange declined 15.9% from a week earlier, reaching 47,147 tons, according to the exchange's weekly stock report published Thursday. Operations at BHP's Escondida site in Chile, the globe's largest copper mine, were stopped on Wednesday after a fatal accident claimed a worker's life.

Zinc rose 0.59% and was heading for a 1.49% weekly gain, supported by supply fears after Nyrstar said it would conduct a strategic assessment of its zinc smelting business in the Netherlands. Aluminium gained 0.43%, lead slipped 0.08%, nickel fell 0.43% and tin was almost unchanged, with a 0.04% decline.