Copper prices edged higher on Thursday, as the metals market saw an extended inflow of money through investment funds, while a forecast of potential deficit in the refined copper market this year also lent support.
Three-month copper on the London Metal Exchange (LME) was up 0.2% at $9,795.50 per metric ton, as of 0222 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.7% to 79,210 yuan ($10,932.15) a ton.
“Fund buying was still relentless during the U.S. session … and after a slightly weaker opening, Asian funds seem to be follow through too on this wave of buying,” said a trader.
A slightly weaker dollar index helped make greenback-priced metals cheaper to holders of other currencies.
Analysts in Goldman Sachs forecast the global refined copper market is likely to see a deficit of 428,000 tons in 2024 and expect copper prices in London to hit $12,000 a ton within the next 12 months.
In China, the Yangshan premium assessed by SMM has dropped to zero for the first time on record, indicating weak appetite to import copper into China, following a surge in prices.
London copper in tight range as weak China demand, supply woes weigh
LME aluminium dropped 0.9% to $2,579.50 a ton, nickel eased 0.5% to $18,850, zinc was nearly flat at $2,804, lead rose 0.2% to $2,200, and tin fell 0.5% to $31,690.
SHFE aluminium rose 1.1% to 20,370 yuan a ton, nickel advanced 0.6% to 142,210 yuan, zinc edged up 0.2% at 22,500 yuan, lead was up 0.5% at 17,095 yuan and tin increased 0.6% to 255,710 yuan.
In company news, London-listed miner Anglo American said it had received an all-share buyout proposal from BHP Group.
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