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Copper prices rise due to low inventories and China’s support for the real estate sector

By Eileen Soreng

Nov 25 (Reuters) – London copper rose to a month-long high on Thursday, helped by China’s efforts to bolster its housing sector and by concerns about global supply shortages, as a weaker dollar made prices cheaper. metals for holders of other currencies.

* At 1021 GMT, three-month copper on the London Metal Exchange (LME) was up 0.56% at $ 9,890 a tonne after climbing earlier to $ 9,920, the highest since October 22.

* The most traded January copper contract on the Shanghai Futures Exchange rose as much as 1.6% to 72,260 yuan ($ 11,312.72) a ton in the session, its highest level since October 22.

* Copper is supported by signs of more support for the property sector in China, according to commodities brokerage Anna Stablum of Marex Spectron.

* Chengdu, in southwest China, said it will act to ensure that real estate developers receive funds from pre-sold properties and fresh loans, in the first such move from a Chinese city, seeking to alleviate a housing crisis. liquidity in the sector.

* “We see high volatility for copper in the near term as global inventories remain at multi-year lows,” said CRU analyst Craig Lang. “Prices are likely to remain very sensitive … to changes in market fundamentals.”

* LME on-warrant copper stocks have plummeted to 62,225 tonnes, almost 74% down from 238,725 tonnes in August.

(Report by Eileen Soreng in Bengaluru; Edited in Spanish by Janisse Huambachano)

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