METALS-London copper gains on optimism over demand prospects

METALS-London copper gains on optimism over demand prospects

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SINGAPORE, May 28 (Reuters) – London copper prices rose on Thursday, buoyed by hopes that stimulus measures will boost demand as more economies reopened after months of lockdowns imposed to curb the spread of the novel coronavirus.

Three-month copper on the London Metal Exchange (LME) rose 1.2% to $5,320 a tonne by 0707 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange eased 0.3% to 43,700 yuan ($6,109.24) a tonne.

“LME base metals gained …as measures to support the economies offset the negative impact of heightened geopolitical tension,” Anna Stablum, a commodities broker at Marex Spectron, said in a note.

South Korea’s central bank cut interest rates to a record low, and Japan approved a new $1.1 trillion stimulus package on Wednesday. In Australia, the economic downturn is likely to be less severe than had been thought.

However, risks remained, with tensions rising between the United States and China after Beijing proposed directly imposing national security legislation in Hong Kong. U.S. Secretary of State Mike Pompeo said on Wednesday the territory no longer qualified for its special status under U.S. law.

FUNDAMENTALS

* ANTAMINA: Teck Resources Ltd said operations at its copper and zinc mine Antamina has resumed and that it expected full production there by the third quarter.

* COPPER SURPLUS: The global copper market is expected to be in surplus by 285,000 tonnes this year because of the pandemic, with the overhang rising to 675,000 tonnes in 2021, the International Wrought Copper Council said.

* OTHER PRICES: LME aluminium rose 0.5% to $1,533.50 a tonne, nickel climbed 0.9% to $12,225 a tonne while ShFE aluminium jumped 1.5% to 13,155 yuan a tonne and ShFE zinc fell 0.6% to 16,180 yuan.

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