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METALS-London copper rises as traders bet on bullish demand outlook

05/11/2021 02:05
METALS-London copper rises as traders bet on bullish demand outlook

Updates prices, adds quotes and details

By Mai Nguyen

- London copper prices climbed on Tuesday, as traders bet on demand prospects from metal-reliant renewable energy and electric vehicles (EV) sectors and as the global economy steadily recovers from the fallout of the COVID-19 pandemic.

Three-month copper on the London Metal Exchange CMCU3 was up 1% at $10,490 a tonne, as of 0538 GMT, inching closer to a record peak of $10,747.50 notched in the previous session.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 dipped 0.5% to 76,380 yuan ($11,887.94) a tonne, clawing back from early losses of 2.5%.

"The continued strengthening of the global economy, at the same time as governments are intent on increasing stimulus measures is driving sentiment higher," said ANZ analysts in a report.

"Copper is also attracting interest from investors looking to benefit from the new energy sector, with demand from the renewable energy and EV sector expected to boost demand," they added.


FUNDAMENTALS

* A union representing workers at BHP Group's BHP.AX Escondida and Spence copper mines in Chile has called for a strike vote among its members after contract negotiations stalled. nL1N2MX1A4

* A shortage of copper and dwindling inventories in the long-term are likely to propel prices of the industrial metal to levels beyond current record highs, unless scrap supplies rise significantly, analysts said. nL8N2MU55U

* ShFE copper speculative net long rose to 52.8% of open interest on Monday, the highest since the position rose to an 18-year high of 57.9% in February, from Friday's 47.4%, Marex Analytics data showed.

* About 50-80% of LME copper warrants are currently held by one party. 0#LME-WHL

* More than 90% of LME tin inventories and short-term futures are currently held by a party. 0#LME-WHT

* LME aluminium CMAL3 rose 1.8% to $2,577 a tonne, LME aluminium CMAL3 climbed 1.9% to $2,579.50 a tonne, while ShFE nickel SNIcv1 dropped 1.2% to 131,960 yuan a tonne.


($1 = 6.4250 yuan)


(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)

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

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