Copper edges higher, finding support in China's rising factory activity

Copper prices inched up on Wednesday, according to Business Recorder, after figures showed Chinese factory output returned to expansion in September. The London Metal Exchange's benchmark three-month contract climbed 0.23% to $14,471 per metric ton as of 0330 GMT. In Shanghai, the most-traded November contract added 0.21% to 109,530 yuan ($16,340.20) a ton, though it was on track to finish the shortened week 0.52% lower.

Official manufacturing PMI rose to 50.1 in September from 49.8 in August, while a private RatingDog survey put its gauge at a five-month peak of 52.1, up from 51.5. Trading stayed thin before the week-long National Day holiday in China, and the Shanghai Futures Exchange closes from Thursday until October 8. Physical demand softened, and the domestic premium eased from Tuesday's high to 1,050 yuan a ton, while the Yangshan premium edged up to $119 a ton.

The dollar stayed firm, heading for a monthly gain of roughly 2% on higher US yields, while Brent crude hovered above $100 a barrel. Those moves keep inflation concerns and expectations of another Federal Reserve rate hike alive, and a stronger dollar makes greenback-priced metals costlier for holders of other currencies. Among other LME metals, aluminium rose 0.09%, nickel gained 0.23%, zinc slipped 0.23%, and tin fell 0.93%.