Copper set for biggest weekly jump in 3 months on US stimulus hopes, Chile strike

Copper prices in London were on track for their biggest weekly gain in three months on Friday over hopes for more US stimulus and a labour strike at a mine in top producer Chile.

Three-month copper on the London Metal Exchange rose 1pc to $6,752 a tonne by 0703 GMT.

The contract was up 3pc on a weekly basis and set for its biggest weekly rise since July 10.

The most-traded November copper contract on the Shanghai Futures Exchange ended up 1pc at 51,440 yuan ($7,661.03) a tonne, its highest close since Sept. 23.

A union of workers at Lundin Mining's Candelaria copper mine in Chile walked off the job on Thursday after talks broke down earlier this week, the head of the union told Reuters.

Meanwhile, US President Donald Trump on Thursday said talks with the Congress have restarted over further COVID-19 relief after he ended the talks earlier in the week. However, the prospect of the deal is still unclear.

"With investors still clinging onto hope that US lawmakers will agree to a stimulus package, risk appetite remained positive. Prices were also supported by supply risks," said ANZ analysts in a note.

FUNDAMENTALS

LME aluminium rose 0.5pc to $1,813 a tonne, while nickel advanced 2.7pc to $15,050 a tonne, zinc climbed 3.1pc to $2,438 a tonne and lead rose 0.7pc to $1,805 a tonne.

ShFE aluminium closed up 1.6pc at 14,420 yuan a tonne, nickel jumped 2.5pc to 115,940 yuan a tonne, while lead fell 2.5pc to 14,720 yuan a tonne.

Trafigura intends to restart its copper mine in Democratic Republic of Congo, the prime minister's office said following a meeting with the commodity trader on Thursday.