Copper rises to over 1-week high on demand rebound in China

Copper prices hit their highest in more than a week on Thursday as the Chinese ramped up purchases ahead of a long public holiday, and nickel advanced on supply disruption threat from Russia.

Three-month copper on the London Metal Exchange rose 1.6% to $9,233 per metric ton by 0729 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange closed up 1.5% at 73,830 yuan ($10,363.85) a ton.

Earlier in the session, LME copper hit $9,237, the highest since Sept. 2, and SHFE copper climbed to a level not seen since Sept. 2 at 74,010 yuan.

"Local (Chinese) copper premiums have been lifting. SHFE stocks have been drawing down. These are helping," Sandeep Daga, a director at Metal Intelligence Centre said.

The import premium for copper in China <SMM-CUYP-CN> rose to $65 a ton, compared to a discount of $20 a ton in May. SHFE copper inventories dropped to 215,374 tons, the lowest since March 1.

"We have seen some buying interests from the spot market in China recently," said analyst Matt Huang at broker BANDS Financial, adding that demand is supported by purchases made ahead of a long holiday in China in early October.

However, further price increases might dampen the demand, Huang added.

LME nickel rose as much as 1% to $16,270 a ton, the highest since Sept. 4. SHFE nickel climbed as much as 3.5% to 125,090 yuan.

Russian President Vladimir Putin said on Wednesday that Moscow should consider limiting exports of nickel. Russia is a major nickel supplier to China and Europe.

LME aluminium climbed as much as 2% to its highest since Sept. 4 at $2,417.50 a ton. Zinc hit its highest since Sept. 4 at $2,849, while lead advanced 2.1% to $2,029.50 and tin increased 1.2% to $31,325.

SHFE aluminium jumped as much as 2% to 19,740 yuan a ton, the highest since Sept. 2. Zinc climbed as high as 4% to 23,640 yuan. SHFE lead rose 1.7% to 16,750 yuan and tin advanced 1.6% to 255,300 yuan.