Copper prices rise due to low inventories and China’s support for the real estate sector

London copper rose to a month-long high on Thursday, helped by China’s efforts to bolster its housing sector and concerns about a global supply shortage, while a weaker dollar made metals cheaper for holders of other. foreign exchange.

At 1021 GMT, three-month copper on the London Metal Exchange (LME) was up 0.56% at $ 9,890 a tonne after climbing earlier to $ 9,920, the highest since October 22.

The most traded January copper contract on the Shanghai Futures Exchange rose as much as 1.6% to 72,260 yuan (US $ 11,312.72) a ton in the session, its highest level since October 22.

Copper is supported by signs of more support for the property sector in China, according to commodities brokerage Anna Stablum of Marex Spectron.

Chengdu, in southwest China, said it will act to ensure that real estate developers receive funds from pre-sold properties and fresh loans, in the first such move from a Chinese city, to alleviate a liquidity crisis. in the sector.

“We see high volatility for copper in the short term, as global inventories remain at multi-year lows“Said CRU analyst Craig Lang. “Prices are likely to remain highly sensitive to changes in market fundamentals”.

LME on-warrant copper stocks have plummeted to 62,225 tonnes, almost 74% down from 238,725 tonnes in August.