Copper set for best monthly gain since 2016 on tight supply, demand outlook
Copper prices were set to notch their best month since 2016 on low inventories and a bright outlook for demand, despite a slight easing on the day as a week-long rally in industrial metals ran out of steam.
Three-month copper on the London Metal Exchange CMCU3 was down 0.8% at $9,333.50 a tonne by 0316 GMT on Friday. The contract, however, gained 18.7% so far in February, set for the best month since November 2016.
On Thursday, LME copper hit its highest since August 2011 of $9,617 a tonne, only 5.6% below its record high level of $10,190 marked in February 2011.
The most-traded April copper contract on the Shanghai Futures Exchange SCFcv1 declined 0.8% to 68,810 yuan ($10,642.15) a tonne, but was also set for its best month gain since November 2016.
LME aluminium CMAL3 fell 1.5% to $2,201 a tonne, zinc CMZN3 declined 1.3% to $2,853.50 a tonne and tin CMSN3 dropped 2.8% to $26,100 a tonne.
ShFE nickel SNIcv1 shed 2.8% to 141,060 yuan a tonne and ShFE tin SSNcv1 tumbled 4.2% to 184,900 yuan a tonne.
Peru’s Southern Copper Corp SCCO.N plans to push forward new and pending projects as demand from China and constrained supply generally help propel a global price rally, an executive said.
ShFE aluminium bucked the trend, rising 0.5% to 17,320 yuan a tonne after hitting its highest since August 2011 of 17,695 yuan earlier in the session.
TOP/MTL or MET/L MARKETS NEWS
Asian stocks opened sharply lower on Friday after Wall Street’s main indexes tumbled, with technology-related stocks under pressure following a steep rise in benchmark U.S. Treasury yields.
MKTS/GLOB DATA/EVENTS (GMT)
0745 France GDP QQ Final Q4
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1500 US U Mich Sentiment Final Feb
Source: Reuters (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips)