(Update prices for Asia market close, adds analyst comment in paragraphs 3 and 4 and details in paragraph 5.)
SINGAPORE, June 12 (Reuters) – London copper prices rose on Thursday, although the market expects volatility amid persistent uncertainty over the U.S-China trade deal.
Three-month copper on the London Metal Exchange was up 0.4% at $9,683.5 per metric ton by 0706 GMT, while the most-traded copper contract on the Shanghai Futures Exchange lost 0.7% to 78,610 yuan a ton ($10,947.40).
“LME and SHFE copper prices have been diverging as China’s domestic demand for copper has shown signs of seasonal weakening, while LME is being supported by possible U.S. tariffs on copper imports,” a Hangzhou-based metals analyst said.
Copper inventories in SHFE-registered warehouses are building up but at a slow pace, which is unlikely to pressure SHFE prices too much, she said.
SHFE copper inventories
rose to 107,404 tons in the week ended June 6, from 98,671 tons in the week ended May 23.
The U.S. and China reached agreement on Tuesday that restores a trade truce, removing Beijing’s export curbs on rare earths and allowing Chinese students access to U.S. universities, although markets remain cautious about further developments.
Meanwhile, the dollar slid after U.S. inflation rose less than expected in May, suggesting the Federal Reserve could cut rates soon.
A weaker dollar typically supports metal prices by making them more attractive to buyers using other currencies.
Among other LME metals, zinc added 0.5% to $2,666 per ton, lead gained 0.4% to $1,995.5, aluminum advanced 0.2% to 2,521.5, while nickel fell 0.2% to $15,140, and tin inched 0.1% lower to $32,630.
Among SHFE metals, aluminium gained 1.1% to 20,395 yuan a ton, zinc rose 0.3% to 22,085 yuan, lead gained 0.3% to 16,890 yuan, while nickel fell 1.2% to 120,000 yuan.
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($1 = 7.1807 Chinese yuan) (Reporting by Hongmei Li; Editing by Sumana Nandy)
