The price of copper increased on the LME yesterday as the markets saw signs that China is looking to sustain growth.
With the European economy in crisis, China appears to be loosening its monetary policy with Chinese banks making loans worth $92.5 billion in October up from $74 billion in September.
Australia and New Zealand Banking Group analyst Natalie Robertson wrote in a report: “Chinese authorities have begun selective easing. It will likely shift broader monetary policy towards a less restrictive stance as well, which will be supportive for industrial metals going forward.”
Yesterday three-month copper was up to $7,741 (£4,856) yesterday from Friday’s $7,475 (£4,694).
Aluminium increased yesterday to $2,159 (£1,354) from $2,136 (£1,341) at the end of last week. Alloy was up to $2,076 (£1,302) on Monday from $2,030 (£1,275) on Friday.
Lead was up to $2,016 (£1,265) yesterday from Friday’s $1,969 (£1,237). Nickel was down to $18,050 (£11,324) yesterday from $18,150 (£11,399) at the end of last week.
Tin was a touch lower at $21,600 (£13,551) on Monday from Friday’s $21,650 (£13,597). Zinc increased to $1,932 (£1,212) from $1,880 (£1,181).
Steel edged up to $530 (£332) yesterday compared to Friday’s $525 (£330).