LONDON: Copper hit a two-year peak on Monday on upbeat manufacturing data in top consumer China, while nickel hit a near four-month high on renewed supply worries and soaring steel prices.
Growth in China's manufacturing sector cooled slightly in July, as foreign demand for Chinese goods slackened, but a government-led drive to develop infrastructure boosted growth in the construction sector..
The data, combined with an environmental crackdown in China, sent Chinese steel prices to their highest since December 2013. Nickel is mainly used in stainless steelmaking.
"Confidence in a second-half slowdown is somewhat softening and this is then reflected in a more positive assessment of industrial metals given they are so closely related to the Chinese economy," said Carsten Menke, analyst at Julius Baer.
COPPER: London Metal Exchange copper was last bid up 0.9 percent in official midday rings at $6,381 a tonne, having hit $6,430 earlier, the highest since May 2015.
COPPER SPECULATORS: Hedge funds and money managers increased their net long position in COMEX copper in the week to July 25 to their highest level since April, data showed on Friday.
"The latest rise in the copper price was driven largely by speculation. In our opinion considerable correction potential has meanwhile developed," said Commerzbank in a note.
NICKEL: Nickel was last bid up 0.7 percent in rings at $10,270, having earlier hit its highest since early April at $10,355.
PHILIPPINES: The Philippines' environment minister Roy Cimatu said he would not lift a ban on open-pit mining imposed in April in an anti-pollution crackdown.
The Philippines is the world's top nickel ore supplier.
NORILSK: Russia's Norilsk Nickel (Nornickel), one of the world's largest nickel producers, said its second-quarter consolidated nickel production fell 8 percent quarter-on-quarter.
STEEL: Activity in China's steel industry expanded in July at the fastest pace since April 2016, industry data showed, fuelled by strong demand and low levels of inventory.
DOLLAR: The dollar held near a 13-month low against a basket of currencies, weighed down by political uncertainty and increased short positions. A weak dollar makes dollar priced metals cheaper for non-US investors.
ZINC STOCKS: On-warrant or available LME zinc inventories rose to 155,650 tonnes, up 123 percent over the past 2-1/2 weeks.
METAL PRICES: Zinc was last bid up 1.2 percent at $2,808 a tonne, lead was last bid up 0.5 percent at $2,331 while tin traded up 1 percent at $20,805, not far off last week's six month peak.
Comments
Comments are closed for this article.