(Bloomberg) Copper rose along with other base metals prices as growing expectations of an interest rate cut by the Federal Reserve increased risk appetite and some Chinese smelters planned to cut production.
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Futures on the London Metal Exchange rose toward $9,700 a tonne after falling more than 2 percent in the past two sessions. Expectations that the Fed will ease monetary policy have strengthened in recent trading, boosting stocks.
On the supply side, two Chinese smelters have announced plans to cut output next year as mine cuts put pressure on processing margins, highlighting risks to supplies from the metal’s largest producer.
Copper has been trading in a narrow range in recent weeks after slipping from a record high hit in May on hopes of increased consumption due to the energy transition. Concerns about the strength of demand in China, where growth slowed to its slowest pace in five quarters in the three months to June, have been mounting.
Copper futures on the London Metal Exchange were trading 0.3% higher at $9,691.50 a tonne as of 11:35 a.m. Shanghai time, while aluminum rose 0.4% to $2,414.50, bouncing back from its lowest level in more than three months.
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