METALS-Copper rises as global recovery hopes fuel sentiment
(Updates prices, adds details and quotes)
HANOI, April 19 (Reuters) – Copper prices advanced on Monday as ramped-up vaccine rollouts and more countries emerging from lockdowns boosted hopes of a steady global economic recovery and more demand for metals.
Three-month copper on the London Metal Exchange was up 2% at $9,397 a tonne by 0636 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange climbed 1.1% to 69,540 yuan ($10,664.99) a tonne.
Governments of major economies have so far signalled stable policy outlook to nurture their recovery from the impacts of the pandemic, while more people are getting vaccinated against the novel coronavirus.
“We expect the global economy to peak in the second half of the year,” said Huatai Futures in a note, adding that global central banks might start to tighten their policies from August, pressuring risky assets.
Copper, often used as a gauge of global economic health, is also set to benefit from an expected U.S. infrastructure bill and demand from the renewable and electric vehicle sectors.
LME copper inventories MCUSTX-TOTAL fell for the second straight session, albeit only slightly, while the premium of cash copper over the three-month contract CMCU0-3 rose to $16 a tonne, indicating tightening nearby supplies.
However, stockpiles of copper in ShFE warehouses CU-STX-SGH hit an 11-month high of 202,464 tonnes last week, while Yangshan premium SMM-CUYP-CN hovered near a five-month low.
* Nickel prices fell 1.2% to $16,160 a tonne on the LME and were down 1.4% to 121,270 yuan a tonne on ShFE , as rising ore supply from the Philippines where the rainy season just ended pressured prices.
* LME aluminium rose 1.2% to $2,343.50 a tonne, zinc advanced 0.7% to $2,876.50 a tonne, while ShFE aluminium fell 0.2% to 18,180 yuan a tonne and tin climbed 1.3% to 184,930 yuan a tonne.
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