London copper extended gains to a one-week high on Monday as a dip in the U.S. dollar, and China’s stimulus measures and a decision to ease COVID-19 restrictions lifted sentiment across markets.
Three-month copper on the London Metal Exchange CMCU3 was up 0.9% at $9,542 a tonne by 0717 GMT, after hitting its highest since May 23 at $9,565 earlier in the session.
The most-traded July copper contract in Shanghai SCFcv1 ended daytime trading 0.2% higher at 71,950 yuan ($10,820.69) a tonne.
“The weaker U.S. dollar is providing a tailwind for commodities this week,” said Stephen Innes, managing partner at SPI Asset Management.
“The People’s Bank of China ramping up policy support and companies no longer needing to be on a ‘whitelist’ to resume production from June 1 is getting viewed as a big step toward the light at the end of the lockdown tunnel.”
The dollar =USD was pinned near five-week lows against its rivals, making greenback-denominated metals less expensive for buyers using other currencies.
Shanghai authorities will cancel many conditions for businesses to resume work from Wednesday, a city official said on Sunday, easing a city-wide lockdown that began some two months ago, and will also introduce policies to support its battered economy.
Upbeat sentiment among investors lifted Asian stocks to three-week high.
STOCKS: Inventories of copper MCUSTX-TOTAL in LME-registered warehouses fell by 6,250 tonnes to 156,175 tonnes on Friday. Inventories in warehouses monitored by the Shanghai Futures Exchange fell 23.7% from last Friday.
NICKEL: Shanghai nickel prices SNIcv1 jumped 6.2% to 209,740 yuan a tonne, its highest since May 6, on declining inventories in China. LME
PRICES: LME aluminium CMAL3 rose 0.9% to $2,897.50 a tonne, zinc CMZN3 climbed 2.6% to $3,944.50, nickel CMNI3 rose 5.3% to $29,795, lead CMPB3 was up 0.8% at $2,175.50, and tin CMSN3 gained 2% to $34,790.
Shanghai aluminium SAFcv1 gained 0.2%, zinc SZNcv1 climbed 1.4%, lead SPBcv1 gained 0.7%, tin SSNcv1 jumped 7.
