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METALS-Copper hits record high on demand hope, tight supply

METALS-Copper hits record high on demand hope, tight supply

05/09/2021 22:56
METALS-Copper hits record high on demand hope, tight supply

- Copper prices climbed to record high levels in both London and Shanghai markets, as hopes of improved demand and tight supply fuelled sentiment.

Three-month copper on the London Metal Exchange CMCU3 touched its all-time high level of $10,660.50 a tonne earlier in the session before easing to $10,628 a tonne, still up 2%, at 0234 GMT.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 climbed 4.2% to 77,260 yuan ($12,014.24) a tonne, after touching its record high level of 77,540 yuan earlier.

Sentiment has been supported since Friday after prices on the LME broke a record high level for the first time since 2011. nL1N2MU0CE

Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID-19 slumps and as investments into green energy sectors ramped up, while prices were also supported by tight supply in the concentrate market.


FUNDAMENTALS

* LME aluminium CMAL3 rose 1.2% to $2,571 a tonne and zinc CMZN3 advanced 1.1% to $3,048 a tonne. ShFE zinc SZNcv1 hit its highest since March 2008 of 23,030 yuan a tonne, while ShFE aluminium SAFcv1 climbed 2.2% to 20,135 yuan a tonne.

* A group of 15 key copper smelters in China have agreed to cut their purchases of raw material copper concentrate in 2021 by 8.8% year-on-year, state-backed research house Antaike said, in a bid to boost flagging treatment and refining charges. nL1N2MW07G

* For the top stories in metals and other news, click

TOP/MTL or MET/L

MARKETS NEWS

* Stocks rose amid speculation that interest rates will remain low for an extended period due to the receding risk of a rapid acceleration in inflation, while oil prices jumped after a cyber attack on a U.S. pipeline operator unnerved markets. MKTS/GLOB

DATA/EVENTS (GMT)

0730 UK Halifax House Prices MM April

($1 = 6.4307 yuan)


(Reporting by Mai Nguyen; Editing by Rashmi Aich)

(([email protected]; +842438259623; Reuters Messaging: [email protected]))

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