Copper set for weekly gain on optimism around demand, growth
- The benchmark three-month copper on the London Metal Exchange also ticked 0.12% up to $13,320.50 a ton, set to end the week up by 2.77%
Copper was poised to register a weekly gain on Friday, the first week of trading week after China’s nine-day Lunar New Year break, supported by demand and growth optimism.
The most-active copper contract on the Shanghai Futures Exchange nudged 0.12% upward to 102,820 yuan ($14,992.27) a metric ton as of 0245 GMT, and is poised to end the week higher.
The benchmark three-month copper on the London Metal Exchange also ticked 0.12% up to $13,320.50 a ton, set to end the week up by 2.77%.
The red metal has had an eventful week.
While optimism towards demand and growth dominated the mood - following the US Supreme Court ruling against President Donald Trump’s reciprocal tariffs and the Chinese market’s reopening - this was later tempered by rising stocks globally.
Demand is projected to pick up in the Chinese market, as the Yangshan premium, a gauge of China’s appetite for imported copper, jumped above $50 a ton after the Lunar New Year break, compared with $33 before the holiday.
The ruling against Trump’s global tariffs also reduced immediate risks to global trade flows and industrial demand.
Copper’s rising stock level globally remained a pressure point.
Stocks in LME’s warehouses rose to 253,600 tons, up nearly 80% from January 12 when the stock level began to pick up.
Copper is also facing technical resistance at $13,500 level, which capped rallies repeatedly in February, analysts at Sucden Financial said.
Elsewhere among base metals, tin made a strong return after the Lunar New Year break on supply side concerns provoked by Indonesia’s plan to ban the export of several raw materials, including tin.
The Shanghai most-active tin surged 3.56% to 432,480 yuan a ton, while set to post a 13.51% weekly gain.
The benchmark three-month tin, while adding 1.62% to $55,315 a ton, is poised to soar 18.81% this week.
Among other SHFE metals, aluminium dropped 0.69%, zinc nudged 0.06% lower, nickel tumbled 0.83%, and lead added 0.21%.
Elsewhere on the LME, aluminium, zinc and lead all posted a 0.30% drop, while nickel added 0.57%.