Copper Prices Rise on Improved China Factory Activity

Copper prices have risen due to improved factory activity in China, where the manufacturing sector has returned to growth. According to official purchasing managers' index data, Chinese copper-intensive manufacturing activity rose to 50.1 in September from 49.8 in August.

The three-month copper price on the London Metal Exchange has increased by 0.2% to $14,465 per metric ton as of 0930 GMT and is expected to post its third monthly gain in a row. This would result in a monthly rise of around 1.2%, with the metal gaining about 8.2% in the third quarter.

Ewa Manthey, an ING commodities strategist, believes that copper prices will remain well-supported through Q4 due to structural demand trends and constrained supply growth. However, trading remains subdued ahead of China's National Day holiday, which starts on Thursday and will keep the Shangai Futures Exchange closed until October 8.