price increase thanks to China's stimulus package

Copper prices recovered supported by growing expectations of stimulus measures from China.

The most-traded copper in three months on the London Metal Exchange (LME) hit a one-week high of $9,169.50 a tonne. It was last up 1.8% at $9,132.

Copper prices recovered, supported by growing expectations of stimulus measures after official factory data in top metals consumer China fell to a five-month low in July.

China's Politburo has signaled a sense of urgency to revive its $17 trillion economy, calling for policies to raise wages and boost domestic consumption.

Manthey also cited a buying spree in financial markets, with copper prices down 18% from their all-time high in May. On a monthly basis, copper prices have fallen nearly 5%.

Among other metals, aluminium rose 1.7% to $2,264, after falling to a five-month low in the previous session.

The discount or contango for cash to the three-month contract reached $66.53/mt, the largest since 1998.

Contango - a condition where LME futures prices are higher than near-term prices, usually signals good immediate supply of metals.

LME aluminium, like lead, is still heading for its biggest monthly loss since June 2022, as investor interest in the metal has waned following price rallies in the second quarter.

Nickel rose 2.3% to $16,435, zinc rose 1.5% to $2,667.5, lead rose 0.8% to $2,052 and tin rose 4% to $29,930.

Encouraging signs included rising import premiums, a slight decline in inventories and a slight increase in output at copper processing plants. The so-called Yangshan premium, a gauge of import demand, hit a three-month high after falling sharply into negative territory for most of May and June.

Source: https://kinhtedothi.vn/dong-metal-price-on-August-1-increase-price-nho-goi-kich-thich-cua-trung-quoc.html