Copper rises as strong yuan supports Chinese demand

LONDON, Nov 23 (Reuters): Copper prices rose in London on Thursday as the US currency weakened, supporting demand for the dollar-priced metal from buyers using yuan and other currencies.

Three-month copper on the London Metal Exchange CMCU3 increased 0.8 per cent to $8,419.5 per tonne by 1120 GMT.

Copper, used in power and construction, is up 0.6 per cent so far this year due to the patchy post-pandemic recovery of demand in China, the world's largest metals consumer, and concerns about the economic growth elsewhere. The downturn in euro zone business activity eased in November but remained broadbased.

"The rise in the yuan against the dollar has supported Chinese traders' purchasing power in the international market, visible in the Yangshan premium's SMM-CUYP-CN yearly high," said SP Angel metals associate Arthur Parish. Yuan hovered around a four-month high against the dollar on Thursday.