Commodities

Copper rises as US stimulus optimism raises demand, recovery hopes

Reuters HANOI | Updated on February 08, 2021

Copper is often used as a gauge of global economic health.

Copper prices rose on Monday as optimism around a U.S. stimulus raised hopes of better demand for metals and a recovery in the world's biggest economy.

Copper is often used as a gauge of global economic health.

Three-month copper on the London Metal Exchange rose1% to $7,990 a tonne by 0314 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange advanced 1.6 to 58,810 yuan ($9,107.24) a tonne.

A $1.9-trillion Covid-19 aid package could be passed by U.S. lawmakers as soon as this month just as coronavirus vaccines are being rolled out globally.

LME aluminium rose 0.2% to $2,020 a tonne, nickel increased 0.3% to $18,080 a tonne and tin advanced 0.3% to $23,190 a tonne.

ShFE aluminium rose 1.3% to 15,655 yuan a tonne,nickel gained 1.4% to 133,210 yuan a tonne while tin jumped 1.6% to 166,870 yuan a tonne.

Fundamentals

* Mongolia's government is seeking an agreement from miner Rio Tinto to terminate a deal to expand the OyuTolgoi copper mine in the Gobi Desert, the Financial Times reported.

* LME cash copper was at a $14.50-a-tonne premium over the three-month contract, the highest since September2020, indicating tight nearby supplies.

* ShFE tin inventories jumped to 6,911 tonnes,their highest since June 2019, but LME tin stockpiles hovered near its lowest since May 810 at tonnes.

Published on February 08, 2021

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