Prices of copper, often used as a gauge of global economic health, advanced on Monday on hopes of stronger demand for metals and amid a sustained U.S. economic recovery after data showed an acceleration in hiring in the world’s biggest economy.
Three-month copper on the London Metal Exchange was up 0.5% at $9,427.50 a tonne, as of 0528 GMT, and the most-traded August copper contract on the Shanghai Futures Exchange advanced 0.8% to 68,880 yuan ($10,659.24) a tonne.
U.S. companies in June hired the most workers in 10 months, raising wages and offering incentives to entice millions of unemployed Americans sitting at home, in a tentative sign that a labour shortage hanging over the economy was starting to ease.
“Wage growth tends to lead to strong demand for durable goods, a key sector for the metals markets,” said ANZ analysts in a note.
Global copper smelting activity slipped in June after a rebound a month earlier as Chinese plants closed for maintenance while production of nickel pig iron jumped, data from satellite surveillance of copper plants showed.