Copper hits 2-week high on stimulus hopes, buying ahead of China holiday
Updates prices, adds details
By Mai Nguyen
Sept 13 (Reuters) -Copper prices hit a two-week high on Friday on buying ahead of a Chinese holiday and amid stimulus hopes after President Xi Jinping pushed for measures to boost economic growth.
Three-month copper on the London Metal Exchange CMCU3 was up 0.3% at $9,247 per metric ton, as of 0738 GMT, having climbed as much as 0.9% earlier in the session to $9,296 a ton, its highest since Aug. 30.
The most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 closed 0.7% higher to 73,960 yuan ($10,415.73) a ton. Earlier in the session, it hit 74,450 yuan, the highest since Aug. 30.
Chinese President Xi Jinping on Thursday urged authorities to strive to achieve the country's annual economic goals, a target that would require more supportive policies.
"This is really good to lift sentiment. Commodities prices are higher on expectations of a stimulus," said a trader.
Chinese markets will be closed for the Mid Autumn Festival from Sept. 16-17.
"All commodities are having this usual small restocking. The buying volumes that are usually spread out are concentrated so spot purchase is pretty decent today," the trader added.
SHFE copper inventories dropped to 185,520 tons on Friday, the lowest since Feb. 23.
On a weekly basis, LME copper is up 2.7%, set for the biggest weekly gain since the week of Aug. 12. All other base metals were also rising week-on-week, buoyed by expectation of a U.S. rate cut next week.
LME aluminium CMAL3 increased 0.8% to $2,433.50 a ton, lead CMPB3 advanced 0.3% to $2,033.50, tin CMSN3 edged up 0.8% at $31,655, while zinc CMZN3 was nearly flat at $2,855, and nickel CMNI3 fell 0.5% to $16,055.
SHFE aluminium SAFcv1 climbed 0.8% to 19,745 yuan a ton, nickel SNIcv1 edged up 0.5% at 124,110 yuan, zinc SZNcv1 jumped 2.7% to 23,830 yuan, lead SPBcv1 increased 0.4% to 16,715 yuan and tin SSNcv1 advanced 1.4% to 257,470 yuan.
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(Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema
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