Copper prices soared to their highest levels in over a week on Thursday as China ramped up purchases ahead of a long public holiday, while nickel prices also advanced on concerns over potential supply disruptions from Russia.
On the London Metal Exchange (LME), three-month copper rose 1.3% to $9,205 per metric ton by 0606 GMT, hitting a session high of $9,207, the strongest level since September 3. Meanwhile, the most-traded October copper contract on the Shanghai Futures Exchange (SHFE) increased by 1.6% to 73,910 yuan ($10,381.49) per ton, reaching its highest since September 2.
“Local Chinese copper premiums have been rising, and SHFE stocks are declining, which are supporting prices,” said Sandeep Daga, director at Metal Intelligence Centre. The import premium for copper in China increased to $65 per ton, a sharp contrast to the $20 per ton discount seen in May. SHFE copper inventories also dropped to 215,374 tons, their lowest since March 1.
Analyst Matt Huang from BANDS Financial highlighted recent buying activity in China’s spot market, driven by purchases ahead of the early October holiday. However, he cautioned that further price hikes might dampen demand.
LME nickel rose as much as 1% to $16,270 per ton, the highest since September 4, while SHFE nickel jumped 3.5% to 125,090 yuan. The market reacted to comments from Russian President Vladimir Putin suggesting that Moscow may consider limiting nickel exports. Russia is a key supplier of nickel to both China and Europe.
Other metals also saw gains, with LME aluminium rising 1.5% to $2,406 per ton, its highest in a week, and zinc hitting its highest since September 4 at $2,819. Lead advanced 1.1% to $2,010.50, and tin increased 1.3% to $31,350. In China, SHFE aluminium climbed 1.9% to 19,715 yuan, while zinc surged 3.4% to 23,505 yuan. SHFE lead rose 1.7% to 16,745 yuan, and tin advanced 1.8% to 255,910 yuan.
