Monday, October 18

Perky stock markets lift copper prices


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LONDON — Copper prices rose on Thursday, helped by a recovery on global equities markets, falling exchange inventories and the threat of supply disruption at a mine in Peru.

Benchmark copper on the London Metal Exchange (LME) was up 1.5% at $9,180 a tonne at 1115 GMT.

Prices have, however, fallen from a record high of $10,747.50 in May as global economic growth faltered. Copper is likely to fall further before rising demand reignites its rally, said independent analyst Robin Bhar.

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“If you’re looking to trade copper until the end of the year, you’re probably on the short side. But beyond that, you’d probably be long,” he said.

MARKETS: World equities got their foot back on the gas as hopes grew that Washington can resolve its debt-ceiling squabbles and a drop in energy prices cooled fears of “stagflation.”

PERU: An indigenous community in Peru’s Espinar province plans to block a key mining road indefinitely, a local leader said.

INVENTORIES: On-warrant stocks in LME-registered warehouses fell to 82,850 tonnes from 168,075 tonnes on Sept. 21. Stocks in Shanghai Futures Exchange (ShFE) warehouses at 43,525 are the lowest since 2009.

OUTLOOK: Copper analysts are reviewing their price forecasts after turmoil in China’s construction sector and power supply.

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The Bank of Japan offered its gloomiest view on regional economies in more than a year.

CHINA: Chinese markets reopen on Friday after closing for a public holiday on Oct. 1.

SURPLUS: The International Copper Study Group (ICSG) said the global copper market would see a deficit of 42,000 tonnes this year and a surplus of 328,000 tonnes in 2022.

GERMANY: German industrial output suffered its steepest drop in August since April last year, official data showed.

TECHNICALS: Copper’s 200-day moving average is around $9,150 a tonne. A move below this level would worsen its technical outlook.

OTHER METALS: LME aluminum was up 0.8% at $2,918.15 a tonne, zinc rose 0.4% to $3,026.50, nickel gained 0.5% to $18,160 and tin was up 1% at $35,505.

Lead was down 0.1% at $2,149.50.

(Reporting by Peter Hobson, additional reporting by Mai Nguyen in Hanoi; Editing by Emelia Sithole-Matarise)



financialpost.com

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