Copper prices rose on Monday after China, the world’s top consumer of the red metal, announced new measures to support its economy amid a damaging trade war with the United States.
China’s central bank over the weekend unveiled a key interest rate reform in a bid to help steer borrowing costs lower for companies.
Three-month copper on the London Metal Exchange rose 0.2% to $5,756 a tonne by 0126 GMT, while the most-traded copper contract on the Shanghai Futures Exchange edged up 0.1% to 46,460 yuan ($6,598.21) a tonne.
However, the metal’s rise was capped by weak data that showed the Chinese economy continues to be hurt by an ongoing trade war with the United States, while a trade deal is not yet in sight.
* NOT READY: U.S. President Donald Trump said he was less optimistic than his aides on striking a trade deal with China, saying that while he believed China was ready to come to an agreement, “I’m not ready to make a deal yet.”
* LITHIUM: China’s Ganfeng Lithium said on Sunday it had completed a $160 million deal to raise its stake in the Cauchari-Olaroz lithium brine project in Argentina to 50%.
* COBALT: China’s biggest cobalt refiner Zhejiang Huayou Cobalt said its overseas unit is pulling out of a deal to invest $66.3 million in a cobalt mine in the Democratic Republic of Congo (DRC) after prices of the metal slid.
* NICKEL: The Philippines top exporter of high-grade nickel ore is expected to shut its mining operations soon as ore deposits at a project in the nation’s southernmost province of Tawi-Tawi are nearly depleted, a ministry official told Reuters.
* PRICES: London aluminium rose 0.3%, nickel dipped 0.4%, zinc advanced 0.3% while lead eased 0.2%. In Shanghai, nickel edged up 0.1%, while tin fell 2.2%.
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* Asian stocks rose as hopes of more stimulus from central banks around the world and steps being taken by major economies such as Germany and China soothed investors’ fears of a sharp global economic slump.