Copper nudged higher on Monday, amid growing prospects of a December U.S. rate cut following dovish signals from central bank officials, while analysts noted that speculative interest in the metal has faded in the absence of strong market drivers.
The most-active copper contract on the Shanghai Futures Exchange closed daytime trading up 0.09% at 86,080 yuan ($12,112.68) per metric ton.
The Shanghai contract followed upbeat performances in its London peers, as the benchmark three-month copper closed higher on Friday.
The London contract was unchanged at $10,778 a ton, as of 0810 GMT on Monday.
Gains in copper found support as traders increased their bets for a U.S. rate cut in December.
New York Fed president John Williams said that the U.S. central bank can still cut rates in the near term without putting its inflation goal at risks.
BHP has pulled back from its last effort to buy Anglo American to boost its dominance in copper, the Australian mining giant said on Monday.
Copper is currently hovering at elevated levels after retreating from record-high sessions, without fresh macro or fundamental catalysts to drive a breakout for the red metal in either direction, analysts said.
Speculative interest in copper has ebbed, as the market is directionless at the moment, analysts at Chinese broker Jinrui Futures said in a note.
The most-traded nickel contract rose 0.64% to 115,530 yuan a ton, while the three-month nickel gained 0.69% to $14,555 a ton.
QMB New Energy Materials, an Indonesia-based nickel and cobalt processing project, cut production by half at least after the local environment ministry identified problems with its tailing treatment, Reuters reported on Friday.
Among other SHFE base metals, aluminium dipped 0.40%, zinc dropped 0.42%, lead nudged 0.38% lower, and tin rose 0.25%.
Among LME metals, aluminium gained 0.72%, zinc climbed 0.57%, lead was up 0.20% and tin was up 0.91%.
Source: Reuters
