Shanghai copper logs weekly gains on US rate cut optimism

Shanghai copper ended the week higher on Friday, bolstered by soft U.S. economic data that raised expectations of a rate cut by the Federal Reserve in December. The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading up 0.41% at 87,430 yuan ($12,352.71) per metric ton, ending the week 1.41% higher. Benchmark three-month copper on the London Metal Exchange rose 0.50% to $10,994 a ton as of 0700 GMT, set to end the week up 2.01%. The London contract, however, faced resistance at $11,000 a ton, highlighting a lack of major triggers to break that level. Weak September U.S. retail sales and sluggish consumer confidence have reinforced expectations that the Fed will cut rates next month. The U.S. dollar softened this week, but recovered slightly on Friday. A weak dollar helps make commodities traded in the greenback cheaper for investors holding other currencies, supporting metal prices.

Meanwhile, China’s move to halt 2 million tons of planned copper smelting capacity expansion is seen as largely symbolic for now, analysts and traders said.

Years of relentless capacity growth have deepened competition for scarce concentrate, driving treatment charges to record negative levels. The suspension comes amid Beijing’s broader campaign to curb industrial over-capacity, but analysts said the actual market impact hinges on whether tougher steps, such as forced cuts or production caps, will follow.

Among other SHFE base metals, aluminium rose 0.32%, lead gained 1.09%, nickel nudged 0.15% higher, tin rose 1.53%, and zinc posted dropped to 0.22%.

Among LME metals, aluminium rose 0.58%, zinc added 0.73%, lead ticked 0.18% higher, nickel advanced 0.18% and tin gained 1.81%.