LME copper hits all-time high on tight supply, demand hopes

PUBLISHED: Fri, 07 May 2021 10:30:16 GMT
Mai Nguyen
Reuters
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HANOI, May 7 (Reuters) – London copper prices hit a record high on Friday as tight supply outlook and hopes for strong demand amid the global economic recovery and from the new energy sectors boosted sentiment.

Three-month copper on the London Metal Exchange was up 1.4% at $10,237 a tonne by 0701 GMT, after rising 1.6% earlier to hit an all-time high of $10,253. The contract has leapt 134% since March last year, when demand was hit by the coronavirus pandemic.

The most-traded June copper contract on the Shanghai Futures Exchange climbed as much as 2.7% to 74,950 yuan ($11,603) a tonne, its highest since May 2006, and only 1.6% below its record peak of 76,160 yuan.

“We are seeing solid volumes being traded at these levels, so we could easily see prices continue higher short-term,” said commodities broker Anna Stablum of Marex Spectron.

“The only concern is lack of physical buying in China, but as consumers are getting used to higher prices, they will soon have to channel these higher costs to their end customers.”

FUNDAMENTALS

* China’s copper imports in April fell from the previous month, customs data showed, as a rally in prices for the metal to the highest levels in a decade made purchases less appealing.

* LME aluminium rose 2.2% to $2,542 a tonne, zinc climbed 0.8% to $2,967.50 a tonne, while tin dropped 0.5% to $29,980 a tonne and ShFE zinc advanced 2.3% to 22,415 yuan a tonne.

* ShFE aluminium climbed as much as 3.4% to 19,945 yuan a tonne, its highest since January 2010, with traders attributing the price rise to the strong momentum in copper and supply worries as China-Australia spat deepens.

($1 = 6.4596 yuan)

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