Copper futures extended gains from the previous session and hit a two-week high, supported by positive news from China.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at $3.342 a pound at 11:32 GMT, up 0,34% on the day.
According to the Chinese government’s official report on Saturday, the country’s manufacturing Purchasing Managers’ Index (PMI) rose to 50.8, which exceeded the 50,6 forecast. This brought signs of stabilizing growth in China after last week the IMF cut its economy growth forecast for China to 7.75%, down from 8%. The Organisation for Economic Co-operation and Development also trimmed its expectations to 7,8% from 8%.
On Monday Chinas final HSBC PMI showed a decline to 49,2, down from the flash reading of 49,6 and 50,4 in April. However, positive Saturday news offset the HSBC PMI reading and copper futures rallied near 2% on Monday.
Copper traders consider shifts in Chinas PMI reading as one of the main factors that influence copper prices. The metal is widely used in the Asian nations manufacturing and China accounts for around 40% of global demand, as its the worlds biggest consumer.
Hwang Il Doo, a senior metals trader at Seoul-based Korea Exchange Bank Futures Co, commented: “We had a good official manufacturing number and the FT report is also helping. China’s demand for metals will continue.”
Elsewhere on the market, gold traded at $1 398,45 at 11:33 GMT, down 0,95% for the day. Palladium stood at $749.70, down 1.23%. Platinum and silver also tracked other precious metal trends and slipped respectively 0,57% and 1,32% on the day. At 11:34 GMT silver futures for July traded at $22.420 an ounce. Platinum, which is mostly used in automobile catalysts production, stood at $1 488,95 a troy ounce at 11:36 GMT.
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