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METALS-LME copper hits nearly week-long high on supply issues


Band Brijesh Patel

April 5 (Reuters)Copper prices in London hit a nearly week-long high on Tuesday as a drop in production from the main Chilean producer and the possibility of new sanctions against Russia raised the risks of supply shortages.

Three-month copper on the London Metal Exchange CMCU3 was up 0.3% at $10,498 a tonne, as of 0434 GMT, after gaining 1.1% on Monday.

“With potential new sanctions against Russia, there are fears that we could further disrupt commodity supply chains,” said Ilya Spivak, currency strategist at DailyFX.

The United States and Europe were planning new sanctions to punish Moscow for the killings of civilians in Ukraine, and President Volodymyr Zelenskiy warned that more deaths were likely to be found in areas seized from Russian invaders.

Chile’s copper production fell 7.5% in February to 394,700 tons, the Chilean Copper Commission (Cochilco) said in a report on Monday.

“Chile is kind of the first destination for copper and if we have an alternative supply disruption like Russia with sanctions, of course that feeds on itself,” Spivak added.

However, trading is thin, with major metal consumer markets in China still closed for a public holiday.

China’s main financial hub Shanghai extended restrictions on transport on Tuesday after a day of intensive citywide testing that saw the number of new cases soar to more than 13,000, with no end to the lockdown. is still in sight.

Meanwhile, the U.S. dollar held near a week-long high on talks of new sanctions against Moscow, making dollar-denominated metals more expensive for buyers using other currencies. USD/

EQUITIES: Asian stocks rose on Tuesday and consolidated at their highest levels in more than a month, supported by broad-based gains on Wall Street. MKTS/GLOB

LME PRIZE: Aluminum CMAL3 rose 0.6% to $3,467 per tonne, zinc CMZN3 slipped 1.3% to $4,312.50, leading CMPB3 edged up 0.1% to $2,415, and tin CMSN3 lost 1.1% to $43,665.

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich and Uttaresh.V)

((Brijesh.Patel1@thomsonreuters.com; In US +1 651 848 5832, Outside US +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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