LODNON: Copper prices slipped on Monday from Friday's 29-month high as the dollar strengthened though coronavirus vaccine breakthroughs and strong US factory data pointed to a positive outlook for the global economy and metals demand.
AstraZeneca said its vaccine could be about 90% effective, the third major pharmaceuticals company to announce successful trials this month. A US health official, meanwhile, said Covid-19 shots could reach the first Americans by mid-December.
Benchmark copper on the London Metal Exchange (LME) fell 1.3% to $7,186 a tonne by 1705 GMT but remained close to Friday's peak of $7,294.50 and well above last week's average. Copper has rallied 65% from a low in March as China's metals-intensive economy rebounded and speculative investors piled into the market.
US manufacturing in November saw the quickest pickup since September 2014. Speculators raised their net long in LME copper to 14.6% of active contracts by Thursday, brokers Marex Spectron said. The global copper market had a 72,000 tonne deficit in August after a 125,000 tonne deficit in July, the International Copper Study Group (ICSG) said.
Chile's copper production will likely edge up 0.6% to 5.82 million tonnes in 2020 and climb to 5.99 million tonnes in 2021, state copper commission Cochilco said. China's aluminium imports fell 27.9% in October from September, as the spread between domestic and international prices continued to narrow. Zinc prices are soaring on a supply squeeze even as stealth stocks build, writes Andy Home.
LME aluminium was down 1% at $1,972.50 a tonne, zinc fell 2.4% to $2,726.50, nickel slipped 1.2% to $15,955, lead lost 0.5% to hit $2,005.50 and tin was down 0.8% at $18,640. On Friday, aluminium reached a two-year high, zinc an 18- month peak and lead its highest since January.
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