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METALS-Copper range-bound ahead of New Year holiday

reuters.com · 12/30/2021 02:54
METALS-Copper range-bound ahead of New Year holiday

Updates prices, adds comment

- Copper traded in a narrow range on Thursday as 2021 draws to a close, but the metal often seen as a gauge of global economic health remained on track for its third consecutive yearly gain.

Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,655.50 a tonne by 0704 GMT, after scaling a one-month high in the previous session.

The LME, which remains open on Friday for the year's last trading day, will be closed on Monday for the New Year break.

The most-traded February copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading 0.3% lower at 70,010 yuan ($10,995.76) a tonne.

LME copper hit an all-time high of $10,747.50 a tonne in May as top consumer China staged an economic rebound and exchange inventories fell to multi-year lows.

While it has fallen around 10% since then, some analysts said the metal may remain supported in 2022.

"Copper demand is expected to enter its second year of expansion, especially after the recently-concluded COP26 demonstrated an increasing willingness by governments to prioritise clean energy," said Howie Lee, economist at OCBC in Singapore.

"Unresolved supply chain bottlenecks, which may persist till the second half of 2022, are also expected to keep prices supported," he said.


FUNDAMENTALS

* Peru's government is still far from reaching a deal that would ensure the restart of MMG Ltd's MMLTF huge Las Bambas copper mine, a community advisor and a government source said on Wednesday, a day before a crucial meeting with local communities whose road blockade derailed the mining company's operations. nL1N2TE17R

* Shanghai aluminium SAFcv1 rose as much as 3.6% to 20,585 yuan a tonne, its highest since Oct. 27, propped up by concerns over supply, while LME aluminium CMAL3 advanced 0.5% to $2,825 a tonne, after a two-day decline.

* Alcoa Corp AA reached a deal with workers to end primary aluminium production at its San Ciprian facility in Spain for two years, as soaring European energy prices pressure heavy electricity users. nL8N2TE2Z6

* LME zinc CMZN3 gained 0.1% to $3,515 a tonne, while Shanghai zinc SZNcv1 advanced 0.9% to 24,165 yuan a tonne.

* LME lead CMPB3 slipped 0.3% to $2,279.50 a tonne and Shanghai lead SPBcv1 shed 0.5% to 15,325 yuan a tonne.

* LME nickel CMNI3 rose 0.2% to $20,425 a tonne and Shanghai nickel SNIcv1 jumped 1.5% to 150,450 yuan a tonne.

* LME tin CMSN3 gained 0.9% to $39,495 a tonne and Shanghai tin SSNcv1 climbed 1.6% to 294,370 yuan a tonne.


($1 = 6.3670 yuan)





(Reporting by Enrico Dela Cruz in Manila; Editing by Devika Syamnath)

((enrico.delacruz@tr.com))

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