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LONDON - Copper prices rose on Thursday due to measures to support the economy of top metals consumer China, stronger demand and a relatively weak dollar, with investors focused on upcoming U.S. inflation data.
Three-month copper on the London Metal Exchange (LME) rose 0.6%, to $8,069 per metric ton in official open-outcry trading.
The Yangshan copper premium climbed to $70 a ton, the highest since December 2022, signalling solid demand for metal imports in China.
"This week, we are seeing greater interest in stockpiling from China, as downstream companies did not restock enough ahead of a week-long holiday," Sucden brokerage said in a note.
Copper stockpiles at the LME-registered warehouses hit a two-year high of 181,150 tons, LME daily data showed, but on-warrant inventories dropped to 175,100 after fresh cancellations of 3,525 tons. <0#MCUSTX-LOC-GRD>
A discount for the cash over the LME three-month copper contract stood at the 31-year high of $77.5 per ton as of market close on Wednesday.
"The short-term outlook remains bearish for metals demand and we do not foresee a substantial recovery before next year," said ING analyst Ewa Manthey.
"Metals prices should continue to trade under pressure in the fourth quarter, with the only upside risk being if Chinese demand recovers faster than anticipated."
The U.S. dollar meandered near a two-week low ahead of U.S. September inflation data that will help shape the Federal Reserve's next policy steps. Weaker U.S. currency makes dollar-priced metals more attractive for buyers holding other currencies.
LME aluminium eased 0.3% to $2,207 a ton after hitting its lowest since Sept. 19 at $2,195, zinc was little changed at $2,477.5, tin advanced 1.1% to $25,190, and nickel climbed 1.6% to $18,665.
Lead fell 0.8% to $2,077 after touching its lowest since July 12 of $2,074 as LME-registered inventories rose to the highest since June 2021.
(Reporting by Polina Devitt in London; additional reporting by Mai Nguyen in Hanoi; Editing by Pooja Desai and Jane Merriman)