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LME copper rose to its highest level in nearly two years, boosted by falling inventories and a rebound in manufacturing activity
Jul 29,2020 08:26CST
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Source:Mandarin Finance and Economics
The content below was translated by Tencent automatically for reference.

SMM: (LME) copper on the London Metal Exchange rose on Tuesday as inventories of LME warehouses fell and positive industrial data and government stimulus measures indicated rising demand.

Copper for delivery in three months rose 0.88 per cent, or $56.50, to settle at $6477 a tonne, close to a two-year high of $6633 hit on July 13th.

Nitesh Shah, an analyst at WisdomTree, said copper prices are already higher than they were before the novel coronavirus outbreak and should continue to rise as demand recovers and related epidemic measures limit production.

But he also said the surge in cases in many parts of the world raised questions about whether demand growth would be "as strong as expected".

Stocks of copper in warehouse receipts at LME registered warehouses fell to 44850 tons from about 250000 tons two months ago.

Spot copper is higher than copper for three-month delivery, highlighting recent supply shortages.

(Ifo) of the Ifo Economic Research Institute in Germany said on Tuesday that the local export expectation index rose to 6.9 in July from minus 2.2 in June.

Us non-defense capital orders excluding aircraft rose the most in nearly two years in June.

The total profits of China's industrial enterprises above scale increased by 11.5% in June compared with the same period last year.

The Federal Reserve Board (FED) said it would extend several lending facilities until the end of the year to help stimulate economic activity and support asset prices.

Republicans in the U.S. Senate proposed a $1 trillion aid package on Monday.

The dollar held steady near a two-year low, making metals cheaper for buyers of other currencies.

The chairman of the union of the management of Antofagasta's Centinela copper mine in Chile, (Antofagasta Minerals), said on Monday that it had agreed to accept a new contract, thus lifting the risk of strike by management.

As the world faces the possibility of a second wave of coronavirus infection, Asian countries have imposed restrictions and Britain has imposed quarantine measures on travelers from Spain.

Novel coronavirus vaccine progress optimistic, Moderna Inc and Pfizer (Pfizer Inc) launch vaccine post-trial, clearing the way for regulatory approval and widespread use by the end of 2020, which also supports market confidence.

Among other base metals, aluminum for three-month delivery rose 0.94%, or $16, to settle at $1724 a tonne.

Zinc for three-month delivery rose 0.42%, or $9.50, to settle at $2246.5 per ton.

Three-month nickel fell 0.43%, or $59, to settle at $13660 a tonne;

Three-month lead rose 0.95 per cent, or $17.50, to settle at $1868 a tonne;

Tin for three-month delivery fell 0.23%, or $42, to settle at $17993 a tonne.

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