RTRS: METALS-Copper gains on weak dollar, China imports
Copper rose on Wednesday, spurred by a weak dollar and data showing Chinese imports of the metal jumped unexpectedly in September.
Copper for three-months delivery MCU3 on the London Metal Exchange traded at $6,215 a tonne in official rings from a close of $6,140 on Tuesday.
Imports of unwrought copper and semi-finished copper products in China rose 23 percent to 399,052 tonnes in September. Analysts had expected 300,000 tonnes because a closed arbitrage window was expected to suppress demand. [ID:nSP540802]
For graphics see: here
"To drive copper higher you need the Chinese to come back to the market aggressively," VTB Capital analyst Andrey Kryuchenkov said, adding that sustainable gains in copper would also depend on a recovery in OECD demand.
"In November we'll hopefully see industrial production improving in OECD countries."
World stocks rallied as Chinese trade data provided evidence that the world's third-largest economy is firmly on the path to recovery and that global demand is improving. [ID:nPEK367690] [MKTS/GLOB]
Buying by China, the world's top copper consumer, has helped the metal used in power and construction double in value in 2009. But analysts have fretted that Chinese support has been waning after the government halted its strategic stockpiling campaign.
Supporting gains in base metals the dollar hit a 14-month low versus a currency basket, making commodities priced in the U.S. currency cheaper for holders of other currencies. [FRX/]
"The dollar seems to be pushing all commodity markets," Kryuchenkov said of Wednesday's gains in base metals.