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METALS-Copper rises as U.S. stimulus optimism raises demand, recovery hopes

· 02/07/2021 22:48
METALS-Copper rises as U.S. stimulus optimism raises demand, recovery hopes

- Copper prices rose on Monday as optimism around a U.S. stimulus raised hopes of better demand for metals and a recovery in the world's biggest economy.

Copper is often used as a gauge of global economic health.

Three-month copper on the London Metal Exchange CMCU3 rose 1% to $7,990 a tonne by 0314 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange SCFcv1 advanced 1.6 to 58,810 yuan ($9,107.24) a tonne.

A $1.9-trillion COVID-19 aid package could be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally. nL1N2KB1VX nL1N2KB0UF

LME aluminium CMAL3 rose 0.2% to $2,020 a tonne, nickel CMNI3 increased 0.3% to $18,080 a tonne and tin CMSN3 advanced 0.3% to $23,190 a tonne.

ShFE aluminium SAFcv rose 1.3% to 15,655 yuan a tonne, nickel SNICv1 gained 1.4% to 133,210 yuan a tonne while tin SSNcv1 jumped 1.6% to 166,870 yuan a tonne.


FUNDAMENTALS

* Mongolia's government is seeking an agreement from miner Rio Tinto RIO.L, RIO.AX to terminate a deal to expand the Oyu Tolgoi copper mine in the Gobi Desert, the Financial Times reported.

* LME cash copper was at a $14.50-a-tonne premium over the three-month contract CMCU0-3, the highest since September 2020, indicating tight nearby supplies.

* ShFE tin inventories SSN-TOTAL-W jumped to 6,911 tonnes, their highest since June 2019, but LME tin stockpiles MSNSTX-TOTAL hovered near its lowest since May 810 at tonnes.

* For the top stories in metals and other news, click TOP/MTL or MET/L

MARKETS NEWS

* Asian shares hovered near record highs while oil edged closer to $60 a barrel on stimulus hopes and vaccine roll-outs. MKTS/GLOB

DATA/EVENTS (GMT)

0700 Germany Industrial Output MM Dec

($1 = 6.4575 yuan)


(Reporting by Mai Nguyen; editing by Uttaresh.V)

((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

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