Copper prices on Monday scaled to their highest in more than one month, as relaxation of COVID-19 lockdowns in top metals consumer China, stimulus measures and hopes that the United States would cut tariffs on Beijing propped up sentiment.
Three-month copper on the London Metal Exchange CMCU3 was up 2.2% at $9,705 a tonne, as of 0710 GMT, after hitting its highest since April 29 at $9,805.50 earlier in the session.
The most-traded July copper contract in Shanghai SCFcv1 ended daytime trading up 0.9% at 72,680 yuan ($10,926.53) a tonne.
Beijing and commercial hub Shanghai have been returning to normal in recent days after two months of bitter isolation under a ruthless COVID-19 lockdown.
“China’s reopening appears to be making progress, and despite a miss on today’s services PMI, the traders are putting more weight on the June data,” said Stephen Innes, managing partner at SPI Asset Management.
“There was also some good news on the China and U.S. trade front as the Biden administration looks to step up its response to still-elevated inflationary pressures.”
“The market is a lot healthier than it was a few weeks ago, with global economic data continuing to hold up amid the ongoing China reopening narrative.”
U.S. Commerce Secretary Gina Raimondo said on Sunday that President Joe Biden has asked his team to look at the option of lifting some tariffs on China that were put into place by former President Donald Trump, to combat the current high inflation.
SUPPORT: China’s central bank will strengthen the implementation of its prudent monetary policy and bring forward steps to support the economy, vice governor Pan Gonsheng said last week.
DATA: China’s services activity in May contracted for a third straight month, pointing to a slow recovery ahead despite the easing of some lockdowns in Shanghai and neighbouring cities, a private business survey showed on Monday.
NICKEL: Fund manager Elliott Associates has sued London Metal Exchange for $456 million following the suspension and cancellation of nickel trades on the platform in March.
PRICES: LME aluminium CMAL3 rose 2% to $2,781 a tonne, zinc CMZN3 gained 1.5% to $3,922, nickel CMNI3 climbed 2.4% to $28,800, lead CMPB3 was up 1.7% at $2,205, tin CMSN3 slipped 1.3% to $34,490.
Shanghai aluminium SAFcv1 gained 2.6%, zinc SZNcv1 was up 1.5%, nickel SNIcv1 climbed 1.4%, lead SPBcv1 was down 0.8%, and tin SSNcv1 dipped 4%.
