London copper set for best week since 2016 as prices surpass $10,000/tonne
London copper prices on Friday were on track for their biggest weekly gain in nearly five years on supply concerns and as sentiment was supported by the metal surpassing a key psychological level.
Three-month copper on the London Metal Exchange CMCU3 rose 0.4% to $10,025 a tonne by 0633 GMT. It was up 7.1% on a weekly basis and on track for its strongest weekly rise since November 2016.
“Bullish sentiment increased during LME Week amid power shortages and supply concerns,” said commodities broker Anna Stablum of Marex Spectron in a note, referring to the electricity crunch across Asia and Europe.
“This month’s new recycling restrictions in Malaysia have also caused the scrap market to tighten considerably, forcing traders to turn to refined metal.”
LME copper cancelled warrants MCUSTX-TOTAL, or metals earmarked for delivery, were last at 140,200 tonnes, the highest since August 2018.
Cash copper on the LME was at a $147-a-tonne premium over the three-month contract CMCU0-3, the highest level since April 2012, indicating shortage of nearby supplies.
The metal surpassed $10,000 a tonne in late trading on Thursday, the first time it has done so since June 14.
“As we reach the $10,000 psychological level, stop hunters are trying to force the shorts out,” said a metals trader, adding that risk appetite is also strengthening.
Asian shares advanced warmed by the embers of a strong day on Wall Street, which supported risk-friendly currencies and hurt the safe-haven yen. MKTS/GLOB
The most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 advanced 2.7% to 73,720 yuan ($11,457.88) a tonne, up 6.4% on a weekly basis.
- LME aluminium CMAL3 rose 1.6% to $3,168 a tonne, ShFE aluminium SAFcv1 increased 3.3% to 24,240 yuan a tonne, ShFE zinc SZNcv1 climbed 2.9% to 25,635 yuan a tonne and ShFE nickel SNIcv1 advanced 2.2% to 146,780 yuan a tonne.
Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Krishna Chandra Eluri and Amy Caren Daniel)