Copper futures rebounded on Friday from a one-week low in the prior session, supported by improving demand in top consumer China as lower prices encouraged buyers to return to the market to restock for the upcoming holiday break.

The most-traded copper contract on the Shanghai Futures Exchange was up 0.19% at 79,950 yuan ($11,239.04) metric ton, as of 0406 GMT. The contract hit a more than one-week low on Thursday.

Benchmark three-month copper on the London Metal Exchange added 0.37% to $9,976.5 ton.

Buying interest from downstream consumers have improved following a price fall as the week-long National Day holiday break looms, lending support to prices, analysts said.

“There are a lot of bargain hunt and restocking activities by downstream buyers, as the copper price is currently low and we are head towards China’s National Day holiday,” a Singapore-based analyst said on condition of anonymity as they are not authorised to speak to media.

Also, helping a rebound in prices of the red metal used in power and construction is “the expectation of more production cuts among smelters in September and October”, analysts at broker Maike Futures said.

Chinese smelters may need to trim output as prices of byproduct sulfuric acid, revenue of which have offset loss caused by record low processing fees, have slipped, analysts at broker GF Futures said.

However, a stronger dollar, which makes commodities priced in the greenback more expensive for buyers using other currencies, curbed prices gains.

Additionally, investors await cues from a Friday call between U.S. President Donald Trump and Chinese President Xi Jinping.

For other SHFE metals, aluminium rose 0.17%, lead advanced 0.15%, nickel and zinc were little changed while tin dipped 0.57%.

Among other LME metals, aluminium climbed 0.43%, nickel added 0.35%, lead was flat, tin gained 0.68%, and zinc edged up 0.17%.
Source: Reuters