The copper price rose on Tuesday on a weaker dollar and expectations for better metals demand after Chinese policymakers said they would accelerate infrastructure investment.
Copper for delivery in December rose 2.6% from Monday’s settlement price, touching $3.50 per pound ($7,700 per tonne).
The most-traded October copper contract on the Shanghai Futures Exchange advanced 1.9% to 61,220 yuan ($8,820.31) a tonne.
[Click here for an interactive chart of copper prices]
Officials in China said the third quarter of this year is crucial for rolling out stimulus measures and promised fresh policy actions to follow a stimulus package released in May.
“Today’s main driver is a weaker US dollar,” said a metals trader, adding that the news about China’s policy support boosted the metals complex since Monday.
“There are some dominant holders of material out there that want to push prices higher,” the trader said.
Meanwhile, copper inventories in China’s bonded warehouses fell to their lowest on record at 142,200 tonnes.
In Peru, copper output in July fell 6.6% year-over-year to 195,234 tonnes after two of the country’s largest mines underperformed.
(With files from Reuters)