London Metal Exchange (LME) copper futures rose on Monday as strong export growth data from top consumer China, falling copper inventories and the PASSAGE of a us $1 trillion infrastructure bill lifted sentiment.
LME copper for three-month delivery rose $119.50, or 1.26%, to settle at $9,637.50 a tonne at 17:00 London time, Nov. 8. "Industrial metals continue to face headwinds as signs of an easing of the energy crisis and demand disruptions add to the pressure on the economic outlook for top consumer (China) and the rest of the world," said an analyst at ING. "This week's 19th Party Congress will therefore be closely watched for clues on the outlook for metals demand." China's exports rose more than expected in October as global demand remained strong ahead of the winter holidays, power shortages eased and supply chains improved.
Inventories in LME-registered warehouses have fallen by more than half since late August to 115,525 tonnes. Cancelled warehouse orders accounted for 62 per cent of inventories, indicating a further decline in total inventories. Concerns about supply on the LME market sent spot copper prices ahead of three-month copper prices.
U.S. President Joe Biden lauded Congress on Saturday for passing a long-delayed $1 trillion infrastructure bill, calling it a 'once-in-a-generation' investment and predicting that a broader social safety net would be approved despite tense negotiations.
