LONDON: Copper prices pushed to the strongest levels since March 2013 on Friday as US politicians moved closer to agree on long-awaited stimulus spending that would boost the economy. Copper has regularly hit new multi-year highs and shares touched record levels over the past week, boosted by news about the roll-out of Covid-19 vaccines and robust data about China's economic recovery.
US House Speaker Nancy Pelosi said on Friday there was momentum behind talks on a coronavirus relief bill while US President-elect Joe Biden said a grim jobs report underscored the need for urgent action.
"The US stimulus news has definitely helped risk appetite, which has been strong ever since the good news about vaccines," said Samuel Burman, assistant commodities economist at Capital Economics.
Once stimulus starts to be withdrawn in China, however, prices are likely to pull back next year, Burman added. Three month copper on the London Metal Exchange was up 1% at $7,749.50 a tonne by 1700 GMT, after touching $7,774, its highest since March 2013.
Copper, often used as a gauge of global economic health, was poised for a fifth straight weekly gain with a rise of 3.4%. However, with London copper already leaping 78% since March lows and Shanghai prices rallying 65% in the same period, the contracts may soon run out of steam, analysts said.
Lead has underperformed this week and is on track for a decline of 3%, pressured by selling on the Shanghai Futures Exchange, Alastair Munro at broker Marex Spectron said in a note. Lead was the only LME metal in the red, edging down 0.02% to $2,032 a tonne. LME aluminium gained 0.9% to $2,046 a tonne, zinc inched up 0.02% to $2,756.50, nickel jumped 2.8% to $16,400, and tin added 0.3% to $18,960.
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