Copper rose amid expectations of robust demand and fresh blows to inventories.
Copper prices edged up by 0.25% to 708.6, driven by expectations of strong demand and inventory reductions. Beijing’s decision to increase its budget by CNY 1 trillion for manufacturing investments boosted industrial input buying and alleviated concerns about low demand from the residential construction sector. Notably, stock levels at the Shanghai Futures Exchange and London Metal Exchange dropped by almost 40% in the week ending October 27th, erasing earlier gains. This decline coincided with a rise in the Yangshan copper premium, indicating increased demand for physical copper deliveries in Asia.