Copper prices rose for the first time in five sessions on Tuesday, buoyed by the efforts of China to stabilize its markets as well as a weaker dollar and a drop in LME inventories.
Copper for delivery in March rose on the Comex market in New York, touching $3.78 per pound ($8,316 per tonne), up 0.3% compared to Monday’s closing.
[Click here for an interactive chart of copper prices]
The market was supported by a slew of signals that Chinese authorities are strengthening their resolve to support slumping markets, helping battered Chinese shares to chalk up their largest one-day gain in two years.
“The yuan shows signs of stabilizing following big stock market gains in China as Beijing intensifies efforts to stem the rout,” said Ole Hansen, head of commodity strategy at Saxo Bank.
Meanwhile, copper inventories in LME-registered warehouses slipped further to five-month lows, daily data showed.
The US dollar edged lower on Tuesday, making dollar-priced metals more attractive for buyers using other currencies.
Near-term demand in China, meanwhile, is constrained by the approaching Lunar New Year holiday.