HANOI: London copper prices climbed to their highest in nearly eight years on Wednesday, as supply worries and optimism over further US stimulus boosted investor sentiment.

The three-month copper contract on the London Metal Exchange climbed as much as 1.6% to $8,275 a tonne, its highest since Feb. 15, 2013.

The most-traded March contract on the Shanghai Futures Exchange advanced 2.1% to 60,500 yuan ($9,397.04) a tonne at 0510 GMT.

LME copper inventories were last at 76,050 tonnes, hovering near their lowest since December 2005. ShFE copper stockpiles were near their lowest since December 2011 at 68,588 tonnes.

"There more buyers than sellers (while) inventories are low," said a commodities banker, adding that there has also been a shortfall in copper concentrate.

Market sentiment was also boosted by sustained hopes of the United States soon passing a $1.9 trillion coronavirus relief bill, which could boost the recovery of the world's biggest economy and aid demand for metals.

ANZ said in a note that the progress made in the US stimulus package "brightened the outlook for (base metals) demand."

FUNDAMENTALS

• Peru's copper production dropped 12.5% to 2.15 million tonnes in 2020, driven down by coronavirus-related restrictions.

• China's major copper smelters cut output by 10.5% month-on-month in January after racing to meet annual targets in December, research house Antaike said.

• China's new bank loans leapt to new highs in January, boosted by seasonal demand, while broad credit growth slowed.

• LME aluminium rose 0.8% to $2,070 a tonne, lead edged up 0.3% to $2,084.50 a tonne while zinc increased 0.8% to $2,718 a tonne.

• ShFE nickel rose 0.8% to 135,380 yuan a tonne and zinc was up 1.5% to 20,350 yuan a tonne.