Copper prices rose to a two-year high on Friday after surpassing a strong resistance level of $10,000 a metric ton, backed by investment flows from funds.
Three-month copper on the London Metal Exchange rose 1.1% to $9,971.50 per ton by 0630 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange advanced 1.7% to 80,680 yuan ($11,135.80) a ton.
Earlier in the session, LME copper climbed to as high as $10,000 a ton, its highest since April 2022, and SHFE copper hit a record high of 81,080 yuan.
On a weekly basis, LME copper was on track for the fourth consecutive week of gains. “Index funds, exchange-traded funds, etc, are attracting retail money into metals.
Momentum-based buying is pulling them up; selling resistance remain low,“ said Sandeep Daga, a director at metals analysis company Metal Intelligence Centre. “Copper needs to keep creeping up to avoid backlash from momentum traders. (It) is filled with the spirit of excitement, which is taking it far away from the reality,” he added.
Yangshan copper premium rebounded to $2.5 a ton after hitting zero for the first time on record, indicating a slight improvement in appetite to import copper into China. However, the premium is close to none, compared to the $67.50 at the beginning of the year.
LME aluminium edged up 0.3% at $2,572 a ton, nickel rose 0.7% to $19,295, zinc increased 0.8% to $2,871.50, lead advanced 1% to $2,229.50 and tin was 0.5% higher at $33,025.
Copper rises on funds inflow, potential supply shortage
SHFE aluminium jumped 1.2% to 20,580 yuan a ton, nickel advanced 0.6% to 143,430 yuan, zinc climbed 1.2% to 22,810 yuan, lead increased 1.5% to 17,325 yuan and tin rose 2.8% to 263,110 yuan. However, LME aluminium is set to reverse a streak of sixth straight weekly gain.
The contract was down 3.6% on a weekly basis, on track for the worst week since Jan. 5. LME tin was down 7.2% week-on-week, set for the biggest weekly fall since September 2023.
Comments
Comments are closed for this article.