Copper edges higher on China's rising factory activity

Copper ticked higher on Wednesday as data showed Chinese factory activity returned to growth in September, though trading remained subdued ahead of a week-long holiday in the top metals consumer. Benchmark three-month copper on the London Metal Exchange rose 0.47% to $14,506 a metric ton by 0718 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange gained 0.35% to 109,680 yuan ($16,361.85) a ton, ending September up by 1.45%. China's official manufacturing purchasing managers' index rose to 50.1 in September from 49.8 in August. A private RatingDog survey showed factory activity expanded at a faster pace: its PMI measurerose to a five-month high of 52.1 from 51.5. Trading was subdued before China's National Day holiday. SHFE will close from Thursday and reopen on October 8. The domestic premium continued to weaken from the peak set on Tuesday to 1,050 yuan a ton. But the Yangshan copper premium , a gauge of Chinese consumers' appetite for imported materials, rose slightly to $119 a ton. Pre-holiday demand continued to drain copper in warehouses monitored by SHFE , as copper stocks declined 17.8% to 38,744 tons on Wednesday, the lowest since January 2024. The US dollar remained firm, heading for a roughly 2% monthly rise, supported by higher US yields. A stronger dollar makes greenback-priced metals more expensive for holders of other currencies. Oil also traded firm, with Brent crude hovering above $100 a barrel, keeping inflation concerns and expectations of another rate hike by the US Federal Reserve alive. Among other LME metals, aluminium rose 0.11%, zinc gained 0.32%, lead edged up 0.03%, nickel climbed 0.45% and tin rose 0.15%. On the SHFE, aluminium fell 0.79%, zinc declined 0.36%, lead lost 0.34%, nickel dropped 0.83% and tin rose 0.15%.