Copper hits one-week high on Chinese buying
Three-month copper on the London Metal Exchange gained 0.8% to $9,745 per metric ton by 1400 GMT, its strongest since July 9. LME copper has eased from its three-month peak of $10,200.50, hit on July 2, and Chinese participants are buying on dips, Marex senior base metals strategist Alastair Munro said.
'Add to that chatter on wires around a potential US-Sino trade agreement in months ahead...The surprise remains on the topside.' China's commerce minister said on Friday the country, the world's biggest metals consumer, wants to bring its trade ties with the US back to a stable footing.
Hopes for more metals-intensive economic support were buoyed after an official with the industry ministry said China would issue action plans to stabilise growth in the machinery, autos, and electrical equipment sectors.
The most-traded copper contract on the Shanghai Futures Exchange rose 0.7% to 78,410 yuan ($10,922.74) a ton. 'LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops,' a Shanghai-based metals analyst at a futures company said.
Also supporting the market was higher risk appetite among investors in general as stock markets moved higher, and a weaker dollar. A softer dollar makes commodities priced in the greenback less expensive for buyers using other currencies.
US Comex copper futures climbed 1.3% to $5.58 a lb, bringing the premium of Comex over LME copper to $2,554 a ton. Nickel was the weakest performing LME metal on rising inventories and weak demand for the metal mainly used to make stainless steel and electric vehicle batteries. It was up 0.5% to $15,170 a ton after earlier sinking into the red.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
3 hours ago
- Express Tribune
OPEC+ for compliance with output deals
An OPEC+ panel on Monday stressed the need for full compliance with oil production agreements, ahead of Sunday's separate gathering of eight OPEC+ members to decide on increasing oil output for September. Ministers from the Joint Ministerial Monitoring Committee (JMMC), which includes top energy ministers from the Organisation of the Petroleum Exporting Countries (OPEC) and allies led by Russia, convened online for brief talks. The JMMC meets every two months and has the power to call for a full meeting of OPEC+ to address market developments if deemed necessary. "The committee reiterated the critical importance of achieving full conformity and compensation," OPEC said in a statement after the meeting. Compensation cuts are those that some countries, such as Iraq and Kazakhstan, are being asked to carry out to make up for earlier overproduction. The JMMC asked countries that are not fully compliant to submit updated compensation plans by August 18. Meanwhile, oil prices rose 2% on Monday after a trade deal between the US and the EU, and President Donald Trump's announcement that he would shorten the deadline for Russia to end its war in Ukraine or face sanctions. Brent crude futures were up $1.42, or 2.1%, at $69.86 a barrel by 1658 GMT, while US WTI crude rose $1.40, or 2.2%, to $66.56. Brent touched its highest price in 10 days after Trump said he was reducing the 50-day deadline he gave Russia over Ukraine to 10-12 days. OPEC, in a post on X on Friday, said the committee does not hold decision-making authority over production levels, and "its role is limited to monitoring conformity with production adjustments and reviewing overall market conditions".
Express Tribune
3 hours ago
- Express Tribune
Rupee continues uptrend with appreciation of 24 paisa
The Pakistani rupee appreciated against the US dollar on Monday, gaining 0.08% in the inter-bank market. At close, the rupee settled at 283.21, an increase of 24 paisa. The fresh gain reflects a recent trend of strength, with the local unit rising 0.50% against the greenback last week, its strongest weekly performance in 93 weeks, according to a report of AKD Securities. The rupee had closed the previous week at 283.45 against 284.87 a week earlier. Amid this positive momentum, the Pakistan Business Forum (PBF) has raised concerns over what it calls an artificially controlled exchange rate. It claims the real value of the dollar should be around Rs260 based on current macroeconomic indicators. Gold prices in Pakistan declined on Monday, mirroring a downward trend in the international market as investor appetite for safe-haven assets weakened following a breakthrough in US-European Union trade negotiations. The price of gold per tola in the local market fell Rs100 to settle at Rs356,300, according to the All Pakistan Sarafa Gems and Jewellers Association (APGJSA). Similarly, the rate for 10 grams of gold declined Rs85 to Rs305,470. The local market tracked a near three-week low in international bullion prices as the dollar strengthened and market sentiment improved after reports emerged of a trade accord between Washington and Brussels. Although the deal has not yet been officially signed, its confirmation has been enough to boost risk appetite and reduce the demand for gold as a traditional safe-haven asset. Interactive Commodities Director Adnan Agar noted that gold prices eased due to shifting global dynamics. "Gold touched a low of $3,301, with the high at $3,345. It was later trading around $3,309," he said. "The tentative agreement between the US and EU has softened gold's appeal. Now, all eyes are on key US economic indicators due later this week." Investors are closely watching for two major releases from the United States – the Federal Reserve's monetary policy decision expected on Wednesday night and the monthly employment report scheduled for Friday. "These two data points will heavily influence market sentiment and gold's trajectory in the days ahead," Agar added. The decline comes after Saturday's trading saw a drop in domestic gold rates, when the per-tola price fell Rs300 to Rs356,400. Analysts say that unless new geopolitical risks emerge or economic data disappoints, gold may remain under pressure in the short term.
Express Tribune
3 hours ago
- Express Tribune
Robots play drums, serve drinks at China expo
Serving craft beer, playing mahjong, stacking shelves and boxing, the dozens of humanoid robots at Shanghai's World AI Conference (WAIC) this weekend were embodiments of China's growing AI prowess and ambition. The annual event is primed at showcasing China's progress in the ever-evolving field of artificial intelligence, with the government aiming to position the country as a world leader on both technology and regulation as it snaps at the United States' heels. Organisers said the forum involved more than 800 companies, showcasing over 3,000 products - the undeniable crowd pleasers being the humanoid robots and their raft of slightly surreal party tricks. Opening the event on Saturday, Premier Li Qiang announced China would set up a new organisation for cooperation on AI governance, warning the benefits of development must be balanced with the risks. But in the cavernous expo next door, the mood was more giddy than concerned. "Demand is currently very strong, whether in terms of data, scenarios, model training, or artificial construction. The overall atmosphere in all these areas is very lively," said Yang Yifan, R&D director at Transwarp, a Shanghai-based AI platform provider. At one booth, a robot played drums, half a beat out of time, to Queen's We Will Rock You while a man in safety goggles and a security vest hyped up a giggling crowd. Other droids, some dressed in working overalls or baseball caps, manned assembly lines, played curling with human opponents or sloppily served soft drinks from a dispenser. While most of the machines on display were still a little jerky, the increasing sophistication year-on-year was clear to see. The Chinese government has poured support into robotics, an area in which some experts think China might already have the upper hand over the United States. At Hangzhou-based Unitree's stall, its G1 android - around 130 centimetres (four feet) tall, with a two-hour battery life - kicked, pivoted and punched, keeping its balance with relative fluidity as it shadowboxed around a ring. Ahead of the conference's opening, Unitree announced it would launch a full-size humanoid, the R1, for under $6,000. Tech giant Baidu on Saturday announced a new generation of technology for its "digital humans" - AI agents modelled on real people, which it says are "capable of thinking, making decisions, and collaborating". For now, few visitors to the WAIC expo seemed worried about the potential ramifications of the back-flipping dog robots they were excitedly watching. "When it comes to China's AI development, we have a comparatively good foundation of data and also a wealth of application scenarios," said Transwarp's Yang. afp
