Sept 24 (Reuters) - Copper prices rose on Tuesday on continued momentum of the U.S. interest rate cut last week and improving demand in top consumer China, which is supported by stimulus measures and rising seasonal consumption.
Three-month copper on the London Metal Exchange was up 1% at $9,647.50 per metric ton by 0343 GMT, after hitting its highest since July 18 at $9,649 earlier in the session.
The most-traded October copper contract on the Shanghai Futures Exchange climbed 1.2% to 76,310 yuan ($10,805.72) a ton.
The premium to import copper into China <SMM-CUYP-CN> was last at $65 a ton, rebounding from a discount of $20 a ton in May. SHFE copper inventories <CU-STX-SGH> were last at 164,938 tons, the lowest since Feb. 8.
China's copper consumption is usually stronger from late September and until December."Demand in the past several weeks has been good. Wire rod production in September was quite good because price was low," said CRU analyst He Tianyu, pointing to strong home appliances and electric vehicles output, and increasing grid investment.
"(But) people are still not sure whether the peak season has come because copper price has bounced back recently," He added.
"SHFE inventory has been declining quite sharply. I expect copper demand and price to improve in the fourth quarter."
China's central bank announced broad monetary stimulus and property market support measures on Tuesday. The country has also been providing supportive policies for home appliances, and EVs.
The U.S. Federal Reserve cut rates last week,
instagram growth service and could introduce more cuts over the next year, which could weigh on the dollar, making greenback-priced metals cheaper to holders of other currencies.
LME aluminium increased 0.8% to $2,515.50 a ton, zinc rose 1.5% to $2,927.50, nickel edged up 0.2% at $16,580, lead advanced 0.5% to $2,068 and tin was 0.3% higher at $32,405.
SHFE aluminium rose 0.7% to 19,965 yuan a ton, nickel climbed 0.7% to 126,100 yuan, zinc increased 0.9% to 23,895 yuan, lead rose 1.5% to 16,645 yuan, and tin advanced 1% to 261,790 yuan.
For the top stories in metals and other news, click or($1 = 7.0620 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Varun H K)
