BEIJING: Copper prices climbed on Monday, supported by lowered global supplies, while the nickel contract on the London Metal Exchange (LME) slipped on its first day trading during Asian hours since last March.
Three-month copper on the LME added 0.4% to $8,960 a tonne by 0442 GMT, and the most-traded May copper contract on the Shanghai Futures Exchange was up 0.2% to 69,250 yuan ($10,073.61) a tonne.
Copper inventories in warehouses monitored by SHFE were down 11.6% last Friday, falling for a fourth consecutive week.
Stocks have declined 36.2% so far to 161,152 tonnes, from a peak in late February. Lowered stocks, improving demand and prospect of a pause of the US Federal Reserve’s interest rate hikes supported metal prices.
Still, the market was clouded by global banking woes, with investors assessing moves by authorities and regulators.
The dollar was firm on Monday, placing some pressure on the greenback-priced commodity. LME nickel slipped 0.2% to $23,425 a tonne, with trading volume at 59 lots.
The bourse had suspended the nickel market and canceled all trades after prices doubled within hours to over $100,000 per tonne on March 8, 2022.
The reopening of Asian hour could make it easier for Asia-based traders to seek for profits based on the price difference between London and Shanghai, hence improving some liquidity in the market, traders said.
Copper prices fall as investors take profits after 5-day rally
However, illiquid trading conditions and volatile prices are likely to remain a feature of LME nickel trading in the near-term, according to Jason Sappor, senior analyst at Metals and Mining Research at S&P Global Commodity Insights.
Class 1 nickel, the type of primary nickel that can be delivered against LME and SHFE contracts, represented around only 30% of global primary nickel production in 2021, Sappor said.
SHFE nickel rose 3.1% to 182,510 yuan a tonne, aluminium gained 0.5% to 18,480 yuan, tin jumped 3.8% to 202,040 yuan, and zinc added 0.5% to 22,540 yuan.
LME aluminium dipped 0.1% to $2,335 a tonne and tin climbed 1% to $25,065, while zinc shed 0.1% to $2,890 and lead eased 0.2% to $2,122.