LONDON: Copper prices rose to their highest in more than a week on Monday as attention returned to expectations of strong demand and supply disruptions while tin prices dropped after touching record highs on position limits imposed by China.
Tin on the London Metal Exchange traded 2.5percent down at USD55,350 a metric ton in official rings after hitting a record USD57,515. Copper was up 1percent at USD13,245 a ton after touching USD13,260 for its highest since January 14.
Prices of copper, which is used extensively in the construction sector, hit a record USD13,407 a ton this month and has gained more than 50percent since the start of last year. Copper’s climb has been bolstered by concern over supply disruption from accidents and strikes, including at Capstone Copper’s Mantoverde mine in Chile, and forecasts of soaring demand from data centres used to power artificial intelligence.
“World growth projections are being revised higher, predominantly on the expectation of the next build-out as artificial intelligence begins to permeate all walks of society,” said Marex metals strategist Alastair Munro.
Munro also pointed to improved demand prospects in light of China’s economic growth plans and a surge in investment announced by the state grid this month. China’s state grid said about two weeks ago that it would spend four trillion yuan (USD574 billion) to upgrade the country’s power grid between 2026 and 2030.
Analysts also cited the dollar divestment theme and attraction of hard assets such as industrial metals. In the tin market, the focus was on the Shanghai Futures Exchange, which said it had imposed position restrictions on multiple clients for failing to disclose common control of trading accounts.
Elsewhere, aluminium was up 0.8 percent at USD3,195 a ton, zinc advanced 3.2 percent to USD3,365, lead added 1.4 percent to USD2,055 and nickel was down 0.2 percent at USD18,720.
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