Copper and other base metals rise on U.S. stimulus hopes

Copper and other base metals rise on U.S. stimulus hopes

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London copper and other base metals rose in range-bound trade on Monday on hopes of a fresh U.S. fiscal stimulus package, though gains were muted after top metals consumer China’s third-quarter economic growth came in below forecasts. Three-month copper on the London Metal Exchange was up 0.2% at $6,753 a tonne by 0513 GMT. “Hopes for US stimulus remain alive, and with the election just around the corner, most metals have been trading in a narrow range given the uncertainties,” ING analysts said in a note.

However, the most-traded November copper contract on the Shanghai Futures Exchange ended the morning session down 0.4% at 51,280 yuan ($7,653.16) a tonne. “The market is a bit upset by the 4.9% YoY growth as the consensus has been 5% or more,” ING analysts said. “But the market should recover these losses when it has time to digest the substance of the GDP report instead of just reacting to the headlines.” Overall sentiment was also buoyed by news that drugmaker Pfizer Inc could have a coronavirus vaccine ready in the United States by the end of this year.
* China’s aluminium production rose 7.9% in September from a year earlier as prices recovered and new smelters came online.
* The union of supervisors at BHP’s Escondida mine in Chile has reached an agreement on a labour deal, averting the threat of a strike at the world’s largest copper deposit.
* LME nickel rose 0.8% to $15,780 a tonne, while Shanghai nickel gained 1.7% to 120,630 yuan a tonne. Aluminium slipped 0.4% to $1,863.50 in London but it jumped 1.4% to 14,875 yuan in Shanghai .

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