LONDON--Copper futures rose on the London Metal Exchange Thursday, but are expected to struggle for further gains amid an uncertain economic outlook in China.
The LME's flagship three-month copper contract was up 0.6% at $6,549.75 a metric ton, after two volatile sessions that saw the metal swing in a range of more than $160. After rising 2% Tuesday, the red metal fell 1.4% Wednesday.
The prospect of slower economic growth in China presents a risk to copper prices, however, according to investment bank Jefferies.
"Chinese demand growth for commodities is unlikely to accelerate without aggressive stimulus, and commodity prices should therefore remain range-bound near current levels," said the investment bank. "If China slows, commodity prices would likely move lower."
China accounts for around 40% of global demand for copper, which is used in everything from smartphones to household plumbing.
Other base-metal prices were mixed Thursday. Aluminum was 0.2% higher at $1,732 a ton. Zinc was 0.3% lower at $1,964.25 a ton, nickel was down 1% at $15,750 a ton, lead was down 0.3% at $2,060.25 a ton and tin was up 0.1% at $22,999 a ton.
