Copper near 6-week high on equities crackdown, China floods
- Three-month copper on the London Metal Exchange increased 1.2% to $9,632 a tonne by 0353 GMT
Copper prices rose to their highest in nearly six weeks on Monday, as investors left a subdued equities market for more attractive assets and as floods in China sparked supply concerns.
Three-month copper on the London Metal Exchange increased 1.2% to $9,632 a tonne by 0353 GMT, after rising as much as 1.6% earlier in the session to $9,665 a tonne, its highest since June 16.
The most-traded September copper contract on the Shanghai Futures Exchange advanced 1.8% to 70,820 yuan ($10,921.93) a tonne, after hitting a June 15-high of 71,150 yuan a tonne earlier in the session.
Copper gains for fourth session on economic recovery hopes
Chinese shares slumped as the education and property sectors were defeated on worries over heavy-handed government regulations, making commodities like metals an attractive alternative investment.
Floods in central China, especially in the industrial and transport hub city of Zhengzhou, have raised supply concerns and demand for rebuilding damaged infrastructure, which will consume industrial metals.
FUNDAMENTALS
ShFE nickel hit a five-month high at 146,870 yuan a tonne, tin climbed 1.4% to 233,710 yuan a tonne and aluminium reached its highest since May 19 of 19,750 yuan a tonne.
LME nickel touched its highest since Feb. 25 at $19,645 a tonne, and aluminium rose 0.3% to $2,511 a tonne while tin fell 0.5% to $34,330 a tonne.
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