Copper rises as investors shrug off recovery woes on upbeat earnings

  • Copper is often used as a gauge of global economic health
23 Jul, 2021

Copper advanced on Friday, on track for a weekly gain, as risk appetite improved after upbeat earnings in the equities market helped overcome worries about global growth.

Three-month copper on the London Metal Exchange rose 0.9% to $9,524.50 a tonne by 0321 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange advanced 1.8% to 69,860 yuan a tonne.

Copper is often used as a gauge of global economic health.

Copper prices slip

The European Central Bank's pledge to keep interest rates at record lows for longer to boost recovery and a sluggish inflation also lent support.

FUNDAMENTALS

  • The premium of LME cash lead over the three-month contract hit $21 a tonne, its biggest since June 29, indicating tightening nearby supply as flood continues to hurt supply in Europe while LME inventories stayed at a one-year low.

  • ShFE nickel jumped 3.5% to 143,090 yuan a tonne, tin climbed 4.1% to 234,970 yuan a tonne, lead advanced 1.7% to 16,165 yuan a tonne and aluminium increased 1.6% to 19,410 yuan a tonne.

  • LME nickel rose 1.4% to $19,190 a tonne, tin advanced 1.2% to $34,500 a tonne and zinc increased 0.4% to $2,950 a tonne.

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