Copper prices showed a slight increase on both the Shanghai Futures Exchange (SHFE) and the London Metal Exchange (LME) on Monday. This uptick was largely supported by better-than-expected retail data from China, but gains were limited due to rising tensions between Israel and Iran.
The most-traded copper contract on the SHFE rose by 0.2%, reaching 78,550 yuan ($10,938.89) per metric ton by 07:03 GMT. Meanwhile, the LME’s three-month copper contract climbed by 0.3% to $9,676.5.
A metals analyst based in Beijing noted that copper has responded positively to China’s mixed economic indicators, with investors gradually shaking off initial hesitations. In May, China’s retail sales figures surpassed expectations, though industrial output did not meet forecasts.
The property sector continues to struggle, resulting in a drop in new home prices during the month. As for geopolitical factors, the ongoing conflict between Israel and Iran flared up again over the weekend, with fresh attacks reported.
This situation adds a layer of uncertainty to the market, prompting concerns about metal consumption amidst geopolitical tensions, according to the analyst. The U.S. dollar also experienced a firming trend, rising by 0.25% on Monday and an additional 0.2% in early Asian trading.
A stronger dollar typically raises the cost of dollar-priced commodities for international buyers using different currencies. Within other metals, SHFE zinc saw the most considerable decline, falling by 0.5% to 21,840 yuan per ton.
Nickel dropped 0.3% to 119,690 yuan, and aluminum decreased by 0.1% to 20,405 yuan. In contrast, lead increased by 0.2% to 16,980 yuan, and tin edged up by 0.1% to 264,500 yuan.
On the LME, zinc rose by 0.6% to $2,639 a ton, while lead and nickel gained 0.2% each, though tin experienced a slight decline of 0.2% to $32,615.