LONDON, Dec 8 (Reuters): Copper prices extended their rebound on Friday, lifted by firm demand in top metals market China and hopes for interest rate cuts next year that would boost the global economy.
Three-month copper on the London Metal Exchange had gained 1.1 per cent to $8,435 per metric ton by 1130 GMT. LME copper rose 0.7 per cent on Thursday after three days of losses.
On the Shanghai Futures Exchange, the most-traded January copper contract SCFcv1 rose 0.6 per cent to 68,000 yuan ($9,499.06) a ton.
China's Politburo, a top decision-making body of the ruling Communist Party, said the country will spur domestic demand and consolidate and enhance the economic recovery in 2024, while Chinese passenger vehicle sales jumped 25.5 per cent in November.
"Now that copper has corrected, the market will continue to focus on supply risks and strong demand in China, which is the reason we're bouncing today," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
A major copper mine was shut in Panama late last month, while strikes have also caused disruptions at mines recently.
"The strong trade numbers from China highlights a mismatch between worries about the economic slowdown in China and then at the same time the underlying demand for copper, which remains quite strong," Hansen added.
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