Copper rides trade-talk progress

SINGAPORE — Copper prices rose on Monday on signs of progress in the US-China trade talks and some supply disruptions, but gains were limited as the markets remained cautious about prospects of a deal between the two biggest global economies.

The most-traded copper contract on the Shanghai Futures Exchange rose 0.3% to a two-week high of 47,040 yuan ($6,669.22) a ton by 0455 GMT, while three-month copper on the London Metal Exchange (LME) advanced 0.4% to $5,820 a ton.

US President Donald Trump on Friday outlined the first phase of a deal to end a trade war with China and suspended a threatened tariff hike on Oct. 15, giving hopes of easing the 15-month dispute that has hurt global growth and metals demand.

Copper was also supported by news that Chinese miner MMG Ltd. might halt production at its Las Bambas copper mine in Peru due to protests, while a mine in Chile of Canadian miner Teck Resources Ltd. will be suspended due to a strike.

But gains were limited as US and Chinese officials said much more work is needed before an accord could be agreed, while demand for copper remained subdued amid subtracted economic growth in China, the world’s biggest copper consumer.

“Copper imports weakened sharply last month (year on year). This likely reflects subdued activity in the manufacturing sector, particularly considering the uncertainty that the US-China trade conflict presented,” said ANZ in a note.

The Chinese yuan strengthened amid progress on the USChina trade talks and betterthan-expected China trade surplus, making greenbackpriced metals cheaper for holders of the yuan and potentially boost demand for LME base metals.

China’s unwrought copper imports in September stood at 445,000 tons, while the country exported 435,000 tons of unwrought aluminum and aluminum products in the same month.

September refined copper cathode output by 22 Chinese smelters rose 1.7% month on month to 737,000 tons, research house Antaike said, adding October copper cathode could slip to 730,000 tons due to some overhauls this month.

China’s refined zinc and zinc alloy production increased by 1.5% in September from the previous month to 453,000 tons, up 21.5% year on year and the highest ever for that month, research house Antaike said in a note.

CME Group, Inc.’s physical delivery of aluminum has gained traction since September after expanding its warehousing network into Europe and Asia, fueled by growing liquidity in Asian market, a company official said.

Among other industrial metals, LME aluminum rose 0.2%; tin advanced 0.8%; nickel fell 0.3%; and lead declined 0.6%. In Shanghai, tin rose by one percent; aluminum decreased 0.8%; and nickel fell 0.1%. —