By Polina Devitt
LONDON, Dec 15 (Reuters) – Copper prices rose on Monday as some traders rolled forward positions ahead of a contract expiry this week, helping the market to set aside weak data and worries about the property sector in top consumer China for now.
Benchmark three-month copper on the London Metal Exchange rose 1.4% to $11,670 per metric ton by 1058 GMT.
Copper hit a record high of $11,952 on Friday on worries about tight supply and then saw a sell-off amid renewed fears of the AI bubble bursting.
“Prices are set to remain choppy and volatile intraday into year-end and as we go into the first quarter,” said Alastair Munro, senior metals strategist at Marex.
Short or bearish positions on the LME were being cut or rolled over ahead of settlement on Wednesday, a trader said. About 39% of 165,875 tons of copper stored in LME-registered warehouses was marked as being prepared for delivery out.
Meanwhile, daily inflows to the Comex copper stocks, already at a record high, continued due to higher prices on Comex. The U.S. excluded refined copper from the 50% import tariffs that came into force in August but kept it under review.
“As long as there is a significant arbitrage between the LME and CME, I expect to see material still flow into the U.S. as traders capture those profits,” said Samuel Basi, founder of Perfectly Hedged, a risk management and trading consultancy.
In top metals consumer China, data showed that the country’s factory output growth slowed to a 15-month low in November, while new home prices extended a decline.
Adding to worries about China’s property sector, developer Vanke made a renewed effort to muster bondholder backing for an onshore debt repayment.
Among other LME metals, aluminium rose 0.4% to $2,880.50 a ton, zinc fell 0.1% to $3,121, lead lost 0.2% to $1,964, tin slid 1.1% to $40,915, while nickel shed 0.3% to $14,540.
(Reporting by Polina Devitt; editing by Susan Fenton)
Comments