London copper rises 2% amid greater risk appetite and supply concerns


Content of the article

Copper prices in London jumped more than 2% on Thursday, boosted by improving risk sentiment after the US Federal Reserve took a bullish tone on the economic recovery, while production halted in a Peru’s large mine has exacerbated supply problems.

Three-month copper on the London Metal Exchange was up 2% to $ 9,385 a tonne as of 03:30 GMT. In the previous session, the metal hit a low since Oct. 7 at $ 9,135.

The most-traded copper contract in January on the Shanghai Futures Exchange edged down 0.1% to 68,590 yuan ($ 10,771.04) per tonne.

Advertising

Content of the article

The U.S. central bank has said it will end its bond purchases in March and pave the way for interest rate hikes of three-quarters of a percentage point by the end of 2022 as the economy is approaching full employment and the central bank is facing a surge in inflation.

Meanwhile, LME inventories on mandate fell to 80,720 tonnes, with the LME counting copper on the three-month contract revert to a premium of $ 15 per tonne.

MMG Ltd announced Thursday that it will halt production at its Las Bambas copper mine in Peru from December 18 after the miner failed to reach an agreement with the Peruvian community blocking a transport route used by the ‘installation.

FUNDAMENTALS

* LME aluminum rose 1.3% to $ 2,629.5 per tonne, zinc rose 1.5% to $ 3,319 per tonne, nickel rose 1.2 to $ 19,335 per tonne tonne and lead increased 0.6% to $ 2,298 per tonne.

Advertising

Content of the article

* Aluminum ShFE gained 0.7% to 19,245 yuan per ton, nickel edged up 0.2% to 142,710 yuan per ton, lead fell 0.6% to 15,355 yuan per ton and tin rose 0.1% to 283,610 yuan per ton.

* China’s finance ministry said on Wednesday that it would increase the export tax on blister pack copper in 2022. A table released by the ministry showed that export duties on unrefined copper and copper anodes intended for at electrolytic refining would double to 30% next year. However, Chinese exports of this category totaled only 122 tons in the first 10 months of this year.

* Shanghai regulators, including local branches of the People’s Bank of China and the China Banking and Insurance Regulatory Commission, held meetings with some real estate companies on Wednesday and December 9, offering to help the struggling industry, local media reported.

Advertising

Content of the article

* For the best articles on metals and other news, click on or

MARKET NEWS

* The dollar took a hiatus on Thursday, after giving up on a brief rally after the US Fed said it would end bond purchases during the pandemic in March, as investors awaited imminent decisions from further large central banks.

* Asian stocks followed Wall Street higher on Thursday after the US Fed’s decision to revive bond buying.

DATA / EVENTS (GMT)

0815 France Markit Mfg Flash PMI Dec

0830 Germany Markit Mfg Flash PMI Dec

0900 UE Markit Mfg Flash PMI Dec.

0930 UK Flash Manufacturing PMI Dec.

1200 BOE UK Discount rate Dec.

1245 EU ECB Refinancing rate Dec.

1245 EU ECB Deposit rate Dec.

1330 US Initial Jobless Clm Weekly

1330 Number of housing starts in the United States in November

1415 American industrial production MM Nov

1445 US Markit Mfg PMI Flash Dec

1:30 p.m. Press conference following the ECB Governing Council meeting in Frankfurt

($ 1 = 6.3680 Chinese yuan) (Reporting by Eileen Soreng in Bangalore; Editing by Sherry Jacob-Phillips)

Advertising

comments

Postmedia is committed to maintaining a vibrant but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Visit our Community rules for more information and details on how to adjust your E-mail settings.


Comments are closed.