BASIC METALS-Copper hits 2-week high driven by fund purchases

By Pratima Desai

LONDON, Jul 5 (Reuters) – Copper prices rose on Monday, hitting their highest level in more than two weeks as the dollar’s uptrend stalled and prompted fund purchases, but expectations of higher supply and slowing demand in China limited earnings.

* At 1016 GMT, three-month copper on the London Metal Exchange (LME) was up 1.3% at $ 9,499 a tonne. Prices of the metal climbed earlier to $ 9,536, the highest since June 16.

* The appreciation of the US currency in recent months makes metals more expensive for holders of other currencies, which has affected prices.

* The dollar was stable on Monday, giving metals a boost.

* Manufacturing activity in China expanded at a smoother pace in June. Rising COVID-19 cases and supply chain issues brought production growth to its lowest level in 15 months.

* Edward Meir, an analyst at ED&F Man Capital Markets, said the copper bias “could be somewhat less considering the increasing COVID-related lockdowns in Asia and the state of physical markets in China.”

* Copper stocks in customs warehouses in China rose to their highest level since July 2019. At 435,600 tonnes, they have risen more than 25% since mid-February.

(Report by Pratima Desai. Edited in Spanish by Janisse Huambachano)

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