Copper futures rose for a sixth session in a row on Friday in their longest winning run this year, backed by a weaker dollar and tighter physical supply in top consumer China. Other base metals climbed with copper, joining a rally in global equities while gold was set for the biggest weekly rise in three months.
"The main takeaway from the Fed this week has been a weaker dollar, which is generally positive for the commodities space," said Vicky Sanders, head of analytics sales at Marex Spectron.
"And I note that in Asia the Shanghai copper futures performed very well, with some decent volumes, giving a boost to LME prices."
Three-month copper on the London Metal Exchange ended up 1.41 percent at $6,820 a tonne after peaking at $6,827 earlier, its highest since June 4.
Friday marked the sixth straight day of gains for LME copper, its longest winning streak since a seven-day rise in December. For the week, copper is up 2.5 percent, its biggest weekly increase since late March.
Premiums for physical copper in Shanghai surged to 580-730 ($93-120) yuan per tonne over the Shanghai front-month futures on Friday, from a small discount last week, said Guo Hao, an analyst at Jinrui Futures in Shenzhen. "We think demand is one reason. It's very hot right now and sales of air-conditioning units are rising," said Guo. Hot temperatures typically lead to higher demand for copper tube, which is used in air conditioners. The Chinese port of Qingdao, the world's seventh busiest, has been at the centre of an investigation into whether a private metals trading firm, Decheng Mining, used multiple warehouse receipts for the same metal cargo to obtain financing.
A supply shortage is also supporting zinc, with LME futures scaling a fresh 16-month high on Friday and heading for their largest weekly increase this year.
LME zinc, which hit an intraday top of $2,182 per tonne - its highest level since February 18 last year, ended at $2,177 a tonne, up 1.11 percent. It has gained 4.1 percent for the week, its largest weekly rise since August last year.
Global zinc demand outpaced supply by 107,000 tonnes in January to April, up sharply from a deficit of 17,000 tonnes in January-March, data from Lisbon-based International Lead and Zinc Study Group showed on Monday.
Zinc stocks on LME warehouses have been falling this year, hitting 674,375 tonnes on Wednesday, the lowest since late 2010. While lead stocks were similarly low, prices have not risen as sharply. "The difference appears to be that participants are still engaged with zinc, while lead remains in the shadows with prices remaining range-bound," Standard Bank said in a note.
LME lead ended at $2,130 per tonne, from $2,129 at the close on Thursday; nickel at $18,400 per tonne from $18,545; and aluminium at $1,886 per tonne from $1,889. Tin closed at $22,575 per tonne from $22,595 at the close on Thursday.
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