Copper set for third weekly rise on China demand, supply worries
- The metal, widely used in power and construction, was on course to add 2.3pc on the London Metal Exchange this week, its third successive weekly rise.
MELBOURNE: Copper prices rose on Friday, closing in on a 2-1/2-year high hit earlier this week, boosted by supply concerns, strong physical demand in China and hopes of supportive U.S. policies when Joe Biden becomes president.
The metal, widely used in power and construction, was on course to add 2.3pc on the London Metal Exchange this week, its third successive weekly rise.
FUNDAMENTALS
COPPER: "Physical demand is pretty good in China, in production and in fabrication," said NAB analyst Lachlan Shaw.
"There are concerns about supply due to COVID-19 and over labour disputes in Chile, as well as building expectations about stimulus and a green energy push ...under a Biden presidency."
LME: London copper was up 0.7pc at $7,145 a tonne by 0804 GMT after hitting $7,179 on Monday, the highest since June 2018.
SHFE: Shanghai Futures Exchange copper rose 1.4pc to 53,520 yuan ($8,140.54) a tonne to mark a weekly gain of 2.1pc, the most in three months, having hit a 2-1/2-year high of 53,800 yuan on Monday.
BONDED: The new Shanghai international copper contract ended up 1.3pc at 47,790 yuan a tonne, with volumes of 4,705 lots, less than two-thirds of volumes in Thursday's daytime session on its market debut.
ZINC/LEAD: Zinc prices, which have been supported by a shutdown of the Gamsberg mine in South Africa, rose as much as 1.1pc to an 18-month high of $2,790 in London and as much as 2.9pc in Shanghai to their highest since April 2019.
ShFE lead was the star performer, jumping as much as 4.8pc to 15,300 yuan.
ALUMINIUM: LME aluminium was up 0.2pc at $1,996.50 a tonne after touching $2,000 for the first time in two years on Wednesday.
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