London copper hits 4-month high on China imports

MELBOURNE — London copper scaled a four-month peak on Monday after Chinese data over the weekend showed solid imports of copper last month, signalling an improvement in the manufacturing sector despite the impact of the Sino-US trade tussle on demand.

The better-than-expected import data may point to firming domestic demand after factory activity showed surprising signs of improvement recently, although analysts have noted the recovery could be difficult to sustain amid trade risks.

“China’s commodity imports for November were stronger than expected, suggesting economic growth has stabilized after Q3’s softness,” said ANZ in a report.

“With trade tension keeping inventories relatively low, import demand should be well supported into the year-end,” it said.

Benchmark London Metal Exchange copper rose 0.5% to $6,021 a ton by 0307 GMT, its strongest since July 30.

Prices have broken above the 200-day moving average of $5,990 and if held on Monday’s close, may send a buy signal to momentum following funds to spark further gains.

Shanghai Futures Exchange copper was up 1.9% to 48,260 yuan ($6,856) a ton, the strongest since July 22.

CHINA FACTOR

China’s copper imports rose 12.1% in November from the previous month to their highest in more than a year, as an unexpected improvement in the manufacturing sector drove up demand.

Exports of unwrought aluminium stood at 452,000 tons in November, according to customs data.

January–November exports from China, the world’s top aluminium producer, were down 0.3% from a year ago at 5.25 million tons.

Nearby tightness remained in aluminium, flagging a shortage of immediately available material as the cost of carrying the metal for tomorrow and the next day hit $2 on Friday, pointing to more deliveries into LME stocks ahead.

Asian stocks edged up on Monday, catching some of Wall Street’s momentum after surprisingly strong US jobs data although regional gains were capped by concerns about China’s economy due to the prolonged Sino-US trade war. —