Copper nudges up, set for weekly gain on China tightness
SINGAPORE: Copper prices nudged up on Friday and were set to end the week higher, capping a volatile week in which tightness in big consumer China pushed up prices before a stronger dollar and inflation concerns pared back some of those gains. Benchmark three-month copper on the London Metal Exchange was up 0.08% at $14,632 a metric ton by 0300 GMT. That marks an increase of 0.76% on last week’s…
Copper prices rose slightly on Friday and were expected to continue their upward trend for the week, following a volatile trading week. Tightness in China, the world's biggest copper consumer, triggered a price surge before inflation concerns and a stronger dollar tempered some of the gains. The benchmark three-month copper price on the London Metal Exchange increased by 0.08% to $14,632 per metric ton, marking a 0.76% rise from the previous week.
The drop in visible inventories in China, coupled with smelter production cuts due to maintenance, has led to a perceived shortage in the market, according to David Wilson, head of metals strategy at BNP Paribas. Copper stockpiles in Shanghai fell 15.9% week-over-week to 47,147 tons, while BHP's Escondida mine in Chile, the world's largest copper producer, suspended operations after a fatal accident.
The LME cash-to-three-month copper spread widened to $124.75 a ton, indicating heightened concerns over copper availability. Meanwhile, zinc prices climbed 0.59% and were poised to end the week 1.49% higher, driven by supply worries after Nyrstar announced a review of its zinc smelting operations in the Netherlands. The LME cash-to-three month zinc spread widened to $106 a ton, reflecting tightening supply.
Among other LME metals, aluminium rose 0.43%, lead fell 0.08%, nickel declined 0.43%, and tin remained flat, with a negligible decrease of 0.04%. The Shanghai Futures Exchange (SHFE) was closed for a national holiday in China on Friday.
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