Copper prices inched up on Monday, supported by a weaker dollar, outflows from the warehouses registered with the London Metal Exchange and hopes of a stronger import demand in China this month.

Benchmark copper HG1! on the LME added 0.1% to $9,902.50 a metric ton at 0947 GMT.

Import appetite in top consumer China also underpinned the market, with the Yangshan copper premium (SMM-CUYP-CN) up 1.8% to $58 a ton, its three-month high.

China’s yuan hit a one-week high against the U.S. currency, making dollar-priced metals more attractive for the Chinese buyers.

Chinese imports of unwrought copper in August fell from the July to 425,000 tons but rose from a year ago, while imports of copper concentrates climbed to 2.76 million tons, a four-month high.

“Lower treatment charges failed to curtail China’s appetite for copper concentrate,” analysts at ANZ said in a note.

“Favourable import parity and prospects of weaker domestic production should keep refined copper imports strong in September.”

China’s overall exports growth slowed to a six-month low in August, while imports grew 1.3%, following 4.1% growth a month earlier.

LME-registered copper stocks (MCUSTX-TOTAL) stood at 155,825 tons, with outflows of 2,125 tons across several locations and fresh cancellations of 8,500 tons in South Korea, LME daily data showed.

LME aluminium ALI1! gained 0.7% to $2,618.50 a ton as on-warrant aluminium inventories (MALSTX-TOTAL) in the LME storage fell to 442,425 tons, the lowest since late July, after 32,000 tons of fresh cancellations in Malaysia.

LME zinc ZNC1! gained 0.1% to $2,864, lead LEAD1! climbed 0.4% to $1,992.50, tin FTIN1! added 0.5% to $34,345 and nickel NICKEL1! rose 0.6% to $15,315.
Source: Reuters