LONDON: Copper prices pushed back towards multi-year highs on Wednesday, with stock markets and oil prices also rising as investors who had been spooked by the emergence of a more contagious variant of the coronavirus regained their nerve.
Benchmark copper on the London Metal Exchange (LME) was up 1.3% at $7,845 a tonne by 1701 GMT, nearing Friday’s peak of $8,028, its highest since 2013. The metal used in power and construction fell on Monday and Tuesday after the variant of the coronavirus which emerged in Britain threatened to slow the global economic recovery and metals demand.
Nonetheless, prices are up about 30% this year thanks to strong Chinese demand and massive speculative investment.
An increase in coronavirus cases could disrupt supply of copper just as much as demand, said independent analyst Robin Bhar. “People will continue to buy the dips,” he said.
The central bank will scale back support for the Chinese economy in 2021 and cool credit growth, but fears of derailing a recovery will keep it cautious, policy sources said.
Inventories in warehouses registered with the LME, Comex and the Shanghai Futures Exchange (ShFE) are falling, with ShFE stockpiles at their lowest since 2011.
Codelco, the world’s top copper producer, said it had reached a labour agreement ahead of schedule with the supervisors’ union at its Chuquicamata mine.
LME aluminium was up 0.8% at $2,011 a tonne, zinc rose 2% to $2,829, nickel gained 1.6% to $16,880, lead added 0.7% to $1,978.50 and tin was up 0.2% at $20,030.—Reuters
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