Shanghai copper jumped on Wednesday to its highest level in nearly 20 weeks, recouping almost all of its losses caused by the COVID-19 pandemic on strong demand in China and low stocks.
The most-traded July copper contract on the Shanghai Futures Exchange (ShFE) rose 1.4% to 46,790 yuan ($6,618.39) a tonne by 0414 GMT. Earlier in the day, it jumped 1.8% to 46,980 yuan a tonne, its highest since Jan. 23.
Three-month copper on the London Metal Exchange (LME) rose as much as 0.7% to $5,816 a tonne, its highest since Feb. 19, before easing to $5,795 a tonne, up 0.4%.
“While the copper demand recovery was led by China when it came out of lockdown, the next round of metals recovery should be driven by the rest of the world,” analyst Helen Lau of Argonaut Securities said in a note.
She, however, cautioned that there had been signs that copper demand is losing its momentum in China.
CHINA COPPER: Chinese domestic spot prices of refined copper rose to 46,350 yuan a tonne, their highest since Jan. 23, indicating strong demand in top consumer China.
* INVENTORIES: On-warrant LME copper stocks fell to a near three-month low of 143,750 tonnes, while ShFE copper inventories were at their lowest since Jan. 17. Bonded warehouses stockpiles in China were last at 213,000 tonnes, hovering near record lows hit last month.
* OTHER PRICES: ShFE aluminum hit its highest level since Jan. 23 at 13,730 yuan a tonne and LME aluminum rose 0.1% to $1,607 a tonne. Nickel fell 0.4% to $12,860 a tonne on the LME and declined 1.1% to 103,670 yuan a tonne on ShFE.
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($1 = 7.0697 yuan)