LONDON: Base metals rose on Monday as investors pinned hopes for a global economic recovery on the rollout of coronavirus vaccines and progress in Brexit talks. The United States launched its first shipments of the coronavirus vaccine on Sunday, joining Britain in a drive that is expected to help countries return to normal.
Markets were also supported by comments from the European Union's chief Brexit negotiator Michel Barnier that sealing a trade pact with Britain was still possible before a Dec. 31 deadline. Saxo Bank analyst Ole Hansen said industrial metals were tracking stocks higher, supported by sharper risk appetite and a weaker dollar.
Nickel led the pack, with benchmark prices climbing 1.9% to a 14-month high of $17,765 a tonne. By 1710 GMT it was trading at $17,600. The stainless-steel ingredient also benefitted from supply disruptions in major producer New Caledonia and increased speculative interest.
Citi analyst Oliver Nugent said the "vicious" destocking in the Chinese nickel market had come to an end. "Now we going from destocking into restocking. The physical weakness that weighed on the specs have evaporated and this should see nickel trading closer to its peers."
The US Congress will try this week to end months of indecision and infighting over the federal government's budget priorities and coronavirus aid, with more than $2 trillion in funding from Washington potentially at stake. Freeport-McMoRan Inc has agreed concentrate processing charges for next year with Chinese smelters of $59.50 per tonne and 5.95 cents per lb, a Freeport executive told Reuters on Monday.
LME copper eased 0.1% to $7,769 per tonne, aluminium gained 1.2% to $2,054 per tonne, zinc added 1.3% to $2,833, lead shed 1.8% to $2,027, and tin climbed 1.4% to $19,700.
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