AGL 40.17 Increased By ▲ 0.17 (0.43%)
AIRLINK 130.65 Increased By ▲ 1.12 (0.86%)
BOP 6.85 Increased By ▲ 0.17 (2.54%)
CNERGY 4.63 No Change ▼ 0.00 (0%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 43.14 Increased By ▲ 1.45 (3.48%)
DGKC 83.84 Increased By ▲ 0.07 (0.08%)
FCCL 32.93 Increased By ▲ 0.16 (0.49%)
FFBL 78.20 Increased By ▲ 2.73 (3.62%)
FFL 12.24 Increased By ▲ 0.77 (6.71%)
HUBC 110.80 Increased By ▲ 0.25 (0.23%)
HUMNL 14.50 Decreased By ▼ -0.06 (-0.41%)
KEL 5.60 Increased By ▲ 0.21 (3.9%)
KOSM 8.30 Decreased By ▼ -0.10 (-1.19%)
MLCF 39.63 Decreased By ▼ -0.16 (-0.4%)
NBP 61.98 Increased By ▲ 1.69 (2.8%)
OGDC 199.71 Increased By ▲ 0.05 (0.03%)
PAEL 26.56 Decreased By ▼ -0.09 (-0.34%)
PIBTL 7.78 Increased By ▲ 0.12 (1.57%)
PPL 160.11 Increased By ▲ 2.19 (1.39%)
PRL 26.69 Decreased By ▼ -0.04 (-0.15%)
PTC 18.70 Increased By ▲ 0.24 (1.3%)
SEARL 83.30 Increased By ▲ 0.86 (1.04%)
TELE 8.23 Decreased By ▼ -0.08 (-0.96%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 9.05 Decreased By ▼ -0.01 (-0.11%)
TREET 16.96 Decreased By ▼ -0.51 (-2.92%)
TRG 60.40 Decreased By ▼ -0.92 (-1.5%)
UNITY 28.00 Increased By ▲ 0.57 (2.08%)
WTL 1.42 Increased By ▲ 0.04 (2.9%)
BR100 10,605 Increased By 198.6 (1.91%)
BR30 32,010 Increased By 296.9 (0.94%)
KSE100 98,757 Increased By 1428.6 (1.47%)
KSE30 30,753 Increased By 560.9 (1.86%)
Markets

Copper rises to 28-month high on stimulus hopes, stronger yuan

  • Benchmark copper on LME was up 1% at $6,964.50 a tonne in official trading after earlier reaching $6,985.
Published October 21, 2020

LONDON: Copper rose towards $7,000 a tonne on Wednesday for the first time since June 2018, helped by hopes for U.S. stimulus, strikes at mines in Chile, expectations of healthy demand in China and a strengthening yuan.

Benchmark copper on the London Metal Exchange (LME) was up 1% at $6,964.50 a tonne in official trading after earlier reaching $6,985.

The metal used in power and construction has risen 60% from a low in March as China, which consumes around half the world's copper, rebounded from the coronavirus shock.

Adding to the bullish mood were expectations of bigger stimulus if Joe Biden wins the U.S. presidency, and more Chinese demand after a meeting of China's leaders next week to discuss a five-year development plan, said ING analyst Wenyu Yao.

"In the short term, the market could remain well supported," she said.

CURRENCIES: The dollar slipped to its lowest in seven weeks while the yuan leapt to its strongest since July 2018, taking its gains against the dollar since May to 7% and making metals cheaper for Chinese buyers.

MARKETS: Global stocks fell.

STIMULUS: The White House and Democrats in the U.S. Congress moved closer to agreement on a new coronavirus relief package.

CHINA: China's fiscal revenues grew 4.7% in the third quarter from a year earlier, the finance ministry said, as economic recovery accelerated.

STOCKPILING: The prospect of China buying copper for its stockpiles is filtering through the market.

GLOBAL TRADE: The value of global trade is set to fall by 7-9% in 2020 despite China's rebound, the United Nations said.

CHILE: Miner Antofagasta said full-year copper output would be at the lower end of its original guidance of 725,000-755,000 tonnes.

STRIKES: Chile's Candelaria copper mine suspended operations from Tuesday after unions called for strikes. Workers at Codelco took to the streets on Monday to reject layoffs.

LEAD/ZINC: The global lead and zinc markets will be oversupplied in 2021, the International Lead and Zinc Study Group said.

OTHER METALS: LME aluminium was up 1.1% at $1,854.50 a tonne, zinc rose 1.6% to $2,569, nickel gained 0.5% to $16,101, lead added 2.4% to $1,808.50 and tin was 0.4% higher at $18,750.

Comments

Comments are closed.