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Copper October 01, 2020 10:28:03 AM

Copper edges to one-week high on stimulus hopes and China

Carolina Curiel
ScrapMonster Author
Copper prices edged to their highest in a week on Thursday as optimism over China’s recovery and hopes for a fresh inflow of U.S. stimulus overcame worries about rising inventories.
Copper edges to one-week high on stimulus hopes and China

LONDON, Oct 1 (Reuters) - Copper prices edged to their highest in a week on Thursday as optimism over China’s recovery and hopes for a fresh inflow of U.S. stimulus overcame worries about rising inventories.

The Trump administration’s new stimulus proposal is worth more than $1.5 trillion, a White House official said ahead of potential talks with Democrats on Thursday.

Investors, however, were still trying to digest a more than doubling of London Metal Exchange (LME) copper inventories over the past week, raising questions about the strength of demand.

“A reassessment is taking place. Maybe the market was not as tight physically as we thought and premiums are also coming off in China. That’s why metals, including copper, are consolidating,” said independent consultant Robin Bhar.

“I suspect we’ll be treading water between now and (the U.S. election on) Nov. 3, with markets sideways at best. If we were to make new highs in copper, that would be surprising.”

Three-month LME copper edged up 0.01% to $6,672.50 a tonne by 0954 GMT. The contract hit its highest since Sept. 23 at $6,710 earlier in the session.

Chinese markets, including the Shanghai Futures Exchange, are closed Oct. 1-8 for the Golden Week holiday.

* Further metals support came from a fall in the dollar index to a nine-day low, making dollar-priced metals cheaper for buyers using other currencies.

* In China, the Yangshan import premiums SMM-CUYP-CN for copper have more than halved since May to $50.50 a tonne.

* Canada’s Lundin Mining, owner of the Candelaria copper mine in Chile, requested government mediation in a last-ditch effort to stave off a strike.

* LME aluminium shed 0.8% to $1,751.50 a tonne, nickel added 0.02% to $14,520, zinc eased by 0.4% to $2,394.50, lead advanced 0.9% to $1,840 and tin was down 0.3% at $17,435.