Copper prices rose on Thursday as weaker-than-expected economic data from top consumer China raised hopes the country would implement further monetary easing to prop up growth.
Three-month copper on the London Metal Exchange CMCU3 advanced 0.4% to $9,383 a tonne by 0324 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 was almost unchanged at 68,640 yuan ($10,614.05) a tonne.
China’s gross domestic product expanded 7.9% year-on-year in the second quarter, missing expectations of a 8.1% rise in a Reuters poll, due to slowing manufacturing activity, higher raw material costs and new COVID-19 outbreaks.
The bleak data came amid market speculation of further monetary easing after China’s surprised cut of banks’ reserve requirements last week. Some market watchers say a cut in the country’s benchmark prime loan rate may be next.
FUNDAMENTALS
* The European Commission put forward plans for the world’s first carbon border tax on imports of carbon-intensive steel, aluminium, cement, fertilisers and electricity, as part of a programme to meet its new climate target.
* LME aluminium CMAL3 dipped 0.2% to $2,520 a tonne and nickel CMNI3 rose 0.3% to $18,640 a tonne. ShFE aluminium SAFcv1 shed 0.2% to 19,220 yuan a tonne, lead SPBcv1 jumped 1.7% to 15,865 yuan a tonne and tin SSNcv1 climbed 0.8% to 221,870 yuan a tonne.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; editing by Vinay Dwivedi)