Copper prices ticked higher on Friday as some investors regarded the recent downturn as a buying opportunity, though a firmer dollar and uncertainty over U.S. data capped gains.
Three-month copper on the London Metal Exchange (LME) added 0.2% to $9,336 a tonne by 1020 GMT after dropping by about 9% in June.
“There’s been a cooling down in recent weeks, but that’s a bit overdone. This is potentially a good bargain-hunting opportunity and we’ve seen a bit more interest in recent days with these dips,” said Nitesh Shah, commodity strategist at WisdomTree, a provider of exchange-traded funds.
“We’re in the midst of an economic recovery that’s largely fueled by huge monetary growth and strong fiscal stimulus, which is infrastructure focused and metals intensive.”
The most-traded August copper contract on the Shanghai Futures Exchange closed 0.7% down at 68,260 yuan ($10,531.84) a tonne for a 0.9% decline over the week.
Traders were on edge ahead of U.S. non-farm payrolls data, which is expected to show that job growth picked up in June.
* The Yangshan copper premium fell to $21.50 a tonne, hovering around its lowest since February 2016, indicating subdued demand for imported metal.
* Global copper smelting activity slipped in June as Chinese plants closed for maintenance, having rebounded the previous month, data from satellite surveillance of copper plants showed.
* The dollar hit a three-month high against other major currencies, making metals priced in the U.S. unit more expensive for holders of other currencies.
* LME aluminum rose 0.6% to $2,526 a tonne, zinc shed 0.7% to $2,917, lead added 0.3% to $2,276, nickel firmed 0.1% to $18,115 and tin was down 0.3% at $31,200.
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Source: Reuters (Reporting by Eric Onstad Editing by David Goodman)