(Bloomberg) — Copper climbed along with the rest of the base-metals complex as rising bets on interest-rate cuts from the Federal Reserve boosted risk appetite, and some Chinese smelters planned to reduce output.
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Futures rose toward $9,700 a ton on the London Metal Exchange after losing more than 2% over the previous two sessions. Expectations for a pivot to easing from the Fed have strengthened in recent sessions, aiding equities.
On supply side, two Chinese smelters have laid out plans to reduce production next year after processing margins were squeezed by tightening mine output. The shift highlights risks to supplies from the top metal producer.
Copper has traded in a narrow range in recent weeks after pulling back from a record in May that was driven by expectations for increased consumption from the energy transition. There’s been concern about the strength of demand in China, with growth slowing in the three months to June to the slowest pace in five quarters.
Copper traded 0.3% higher at $9,691.50 a ton on the LME at 11:35 a.m. in Shanghai. Aluminum gained 0.4% to $2,414.50, rebounding from the lowest close in more than three months.
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