Copper rallies to $8,700 level on supply worries, weak dollar

Reuters2021-02-19

Feb 19 (Reuters) - Industrial metals rose across the board in London and Shanghai on Friday, with benchmark LME copper scaling its highest level since February 2012 on tight supply concerns, a weak U.S. dollar and speculation about demand prospects.

Nickel soared to its strongest level since 2014 as a tropical storm headed for southern Philippines, China's biggest supplier, fuelling worries about declining port inventory of the stainless steel ingredient in the world's top metals consumer.

Three-month copper on the London Metal Exchange rose 1.9% to $8,715 a tonne by 0816 GMT, after hitting $8,737 earlier in the day, and was set for its third successive weekly advance.

Copper on the Shanghai Futures Exchange ended daytime trading 2.5% higher at 64,170 yuan ($9,929.90) a tonne, after touching 64,330 yuan, the highest level since 2011.

"The global copper inventory is generally at a low level," analysts at Huatai Futures in China said in a note, adding that China's demand was expected to remain robust after the week-long Lunar New Year holiday that ended on Wednesday.

"There may be a temporary shortage of supply" in China, the analysts said.

A weaker dollar also helped boost the appeal of greenback-priced metals.

Copper stocks in warehouses monitored by the Shanghai Futures Exchange jumped a hefty 43.5% to 112,788 tonnes as of Friday from pre-holiday levels, but remained below last year's peak of around 380,000 tonnes in March.

Copper inventories in LME-registered warehouses are near their lowest since 2005 at 76,025 tonnes while the premium for cash copper over three-month metal rose, suggesting tight nearby supply.

London nickel climbed as much as 2% to $19,535 a tonne, the highest since September 2014. Shanghai's most-active February nickel jumped 4% to 144,050 yuan a tonne.

In Shanghai, tin surged 6%, aluminium rose 0.8%, zinc jumped 2.2%, and lead added 0.6%.

In London, aluminium and zinc advanced 0.8%, lead gained 0.5%, and tin climbed 1.1%.

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精彩评论

  • KW1
    2021-02-22
    KW1
    Like it.
  • Sorrie2u
    2021-02-22
    Sorrie2u
    Nice
  • StonkerLL
    2021-02-22
    StonkerLL
    Go Copper!
  • CL777
    2021-02-22
    CL777
    More and more metals are reaching record levels.What’s next? 
  • Vento95
    2021-02-22
    Vento95
    Wow commodities
  • LEEQF
    2021-02-22
    LEEQF
    Go go go!
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