Prices of base metals rose on Monday as hopes of an improvement in demand rose after China, the world’s top metals consumer, reported no new locally transmitted COVID-19 cases for the first time since July.
Surging novel coronavirus cases due to the highly transmissible Delta variant, slowing China growth and fear of U.S. policy tightening this year have weighed on base metals, with copper hitting its lowest in more than four months last week.
The latest Chinese COVID-19 report offered signs that the current outbreak may be tapering off soon.
Three-month copper on the London Metal Exchange CMCU3 rose 1.1% to $9,136 a tonne by 0302 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 advanced 2.1% to 67,960 yuan ($10,470.69) a tonne.
Copper was also supported by rising supply threat in Chile’s El Teniente mine where a majority of the five worker’s unions on Thursday rejected a labour contract offered prior to the official negotiating period.
LME nickel CMNI3 climbed 2.6% to $18,935 a tonne and aluminium CMAL3 rose 1.6% to $2,588.50 a tonne. ShFE aluminium SAFcv1 advanced 2.3% to 20,425 yuan a tonne and ShFE nickel SNIcv1 increased 2% to 142,550 yuan a tonne.
FUNDAMENTALS
The global world refined copper market showed a 2,000 tonnes surplus in May, compared with 86,000 tonnes deficit in April, the International Copper Study Group said.
Asian share markets were trying to pick up the pieces following last week’s thrashing as coronavirus concerns showed little sign of abating, while safe-haven flows benefited the dollar ahead of a key update on U.S. monetary policy.
MKTS/GLOB DATA/EVENTS (GMT)
0715 France Markit Mfg, Serv, Comp Flash PMIs Aug
0730 Germany Markit Mfg, Serv, Comp Flash PMIs Aug
0800 EU Markit Mfg, Serv, Comp Flash PMIs Aug
0830 UK Flash Mfg, Comp, Serv PMIs Aug
1345 US Markit Mfg, Serv, Comp Flash PMIs Aug
1400 US Existing Home Sales Jul
1400 EU Consumer Confid. Flash Aug
Source: Reuters (Reporting by Mai Nguyen in Hanoi; editing by Uttaresh.V)