Band Brijesh Patel
April 15 (Reuters) – Copper prices in China hit their highest level in more than a month on Friday, buoyed by hopes of further stimulus by China’s major metals consumer and concerns over tight supplies amid the Ukrainian crisis.
The most active copper contract in May on the Shanghai Futures Exchange SCFcv1 was up 1.2% at 74,820 yuan ($11,744.21) a tonne, as of 0532 GMT, after hitting its highest level since March 8 at 74,980 yuan ($11,769.32) earlier. during the day.
The contract is up 1.7% so far this week. The London Metal Exchange has been closed for holidays.
“The prospect of an easing cycle in China supports the rebound in commodity prices,” said Stephen Innes, managing partner at SPI Asset Management.
“Additionally, the situation in Ukraine is worsening, which could reduce some commodities via logistics or sanctions, which would keep the market tight.”
The Chilean Copper Commission on Thursday raised its copper price projection for 2022 to $4.40 a pound, amid a perceived shortage due to the Russian-Ukrainian conflict.
China’s central bank kept borrowing costs for its medium-term political loan unchanged, although Beijing called for more monetary stimulus to cushion an economic slowdown caused by the novel COVID-19 outbreak.
China will step up financial support to the real economy, especially pandemic-hit industries and small businesses, and reduce financing costs, the cabinet or the State Council said in a statement this week.
STOCKS: Copper stocks in LME approved warehouses MCUSTX-TOTAL down 17% this year. The latest LME data showed it rose by 3,675 tonnes to 110,675 tonnes.
STOCKS: Aluminum stocks in LME approved warehouses MALSTX-TOTAL were at 608,000 tonnes on April 13, their lowest level since 2005.
ZINC: zinc ShFE SZNcv1 fell 0.7% to 28,145 yuan ($4,417.81) a tonne, but was on track for a fourth straight week of gains, up 3.8%.
OTHER METALS: Aluminum ShFE SAFcv1 climbed 2.3%, nickel SNIcv1 increased by 3.2%, lead SPBcv1 gained 0.3% and tin SSNcv1 decreased by 0.7%.
($1 = 6.3708 Chinese Yuan)
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)
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