LONDON: Copper rebounded after three days of losses as some bearish investors cancelled their positions, partly because of receding concerns over tight liquidity in top metals consumer China.

China last week refrained from making its usual liquidity injections, but a central banker said in an article seen on Wednesday that liquidity would remain ample.

Investors are expecting China to cool credit growth and scale back fiscal stimulus this year to help stabilise debt. Three-month copper on the London Metal Exchange (LME) had added 0.9% to $7,845.50 a tonne by 1710 GMT.

Wednesday’s LME options expiry also played a part, broker Marex Spectron said in a note.

Zinc was the biggest LME gainer, rising 2.3% to $2,627.50 a tonne after LME on-warrant inventories fell by about 4%.

The premium of LME cash tin over the three-month contract extended gains to a record peak of $1,750 a tonne on Tuesday due to tight supply of LME inventories, which have tumbled by 82% over the past three months.

Benchmark LME tin, supported recently by a military coup in major producer Myanmar, slipped 0.5% to $22,875 a tonne after hitting its highest level since June 2014 on Tuesday.

LME aluminium edged up 0.1% to $1,974.50 a tonne, nickel shed 0.3% to $17,640, while lead rose 0.8% to $2,031 after touching a two-week low of $2,001.


Comments are closed.