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METALS-London copper rises on demand outlook from new energy, EV sectors

05/11/2021 02:05
METALS-London copper rises on demand outlook from new energy, EV sectors

Updates prices

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 0.9% at $10,470 a tonne, as of 0701 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 closed 1% lower at 76,000 yuan ($11,819.23) 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," ANZ analysts said in a report.

Copper is also drawing investors looking to benefit from the renewable energy and EV sectors that are 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 single party. 0#LME-WHT

* LME aluminium CMAL3 rose 1.1% to $2,557.50 a tonne, ShFE zinc SZNcv1 fell 1.3% to 22,515 yuan a tonne, while ShFE nickel SNIcv1 dropped 1.4% to 131,690 yuan a tonne.



($1 = 6.4302 yuan)


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

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

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