LONDON: Copper prices rose for an eighth session on Wednesday, reaching the highest since January 29, due to the bullish technical signals and outperforming prices in the US, while aluminium traded near its four-year high due to worries about market deficit. Benchmark three-month copper on the London Metal Exchange gained 1.0percent to USD14,155 a metric ton by 1407 GMT, after posting a record close on Tuesday.
The LME’s index of six base metals contracts closed at a record high on Tuesday with copper steadily pushing closer to its intraday record high of USD14,527.50 hit on January 29 and strong prices for the entire complex.
“Copper, aluminium, nickel and zinc supply are all impacted either via Middle East smelting losses, sulphur shortages or surging energy input costs,” analysts at TD Securities said in a note.
“In this sense, CTA positioning is firing long on all cylinders across these metals, and further upside momentum continues to entrench these positions,” TD Securities added, referring to investment funds largely driven by computer programmes based on technical signals.
Providing another layer of support to the LME copper, the metal in the US is trading at a premium of about USD600 a ton over the LME benchmark ahead of Washington’s decision on whether to impose import tariffs on refined copper. The market expects a decision by end-June. The most active COMEX July copper futures were last up 2.6percent at USD6.703 a lb with touching a record high.
LME aluminium rose 2.5percent to USD3,652 a ton after hitting USD3,662.50, highest since April 16. The metal is trading near its four-year high as the Iran war disrupted supply from producers in the Middle East.
The premium of the LME cash aluminium contract over the benchmark was last at USD74 per ton with daily LME data showing that on-warrant aluminium stocks in the LME-registered warehouses fell to 301,725 tons after 30,000 fresh cancellations in Malaysia.
Zinc climbed 0.6percent to USD3,551, while lead was last up 0.8percent at USD2,012.50. Both metals hit their highest since late January. Lead is also supported by large holdings of warrants and contracts maturing in May.
Tin gained 2.6percent to USD56,170, having touched highest since March 2, and nickel added 1.6percent to USD19,245. Chinese companies operating in giant nickel producer Indonesia warned that tighter ore quotas and local tax hikes threaten investment.
Comments