LONDON: Copper prices rebounded on Thursday after debt-burdened China Evergrande Group again dodged a default, raising hopes of government support for a property sector that can drive significant demand for metals.
Several of developer Evergrande's bondholders had received interest payments on three bond tranches worth more than $148 million, reports said.
Three-month copper on the London Metal Exchange (LME) gained 0.7% to $9,599 a tonne by 1100 GMT after dipping 0.2% in the previous session.
"It's all about maintaining stability," said Xiao Fu, head of commodity market strategy at Bank of China International, adding that the government will act to calm property market fears but would not necessarily reverse policy on property sector restraints.
Copper edges higher on renewed concern about scarce supply
The real estate sector accounts for a large share of copper consumption and China is the world's biggest user of the metal.
Tight supplies of copper also continued to keep prices on the boil, with LME inventories having tumbled by more than half since August.
Shanghai tin prices surged to their highest in more than two weeks, supported by supply disruptions caused by China closing a border crossing with Myanmar to prevent the spread of the coronavirus.
The most-traded December tin contract on the Shanghai Futures Exchange jumped as much as 5.4% to 289,370 yuan ($45,273.48) a tonne, its highest since Oct. 25.
Tin inventories in both LME and ShFE warehouses have been hovering near multi-year lows. LME tin gained 1.4% to $37,800 a tonne.
LME aluminum advanced 2.4% to $2,639 a tonne, zinc added 0.4% to $3,305.50, lead climbed 1% to $2,362 and nickel was up 0.2% at $19,785.
PT Vale Indonesia said on Wednesday that its nickel matte production next year is expected to fall as much as 13% from normal levels as furnace rebuilding delays brought about by the COVID-19 pandemic continue to hit output.
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