Nov 25 (Reuters) - Copper prices hovered around a near
seven-year peak on Wednesday, as sentiment was lifted by
prospects of U.S. political stability, development of
coronavirus vaccines and demand from China.
Three-month copper on the London Metal Exchange rose
as much as 0.9% to $7,360 a tonne, a level unseen since January
2014, during Asian trading hours before dipping 0.1% to $7,287 a
tonne at 0740 GMT.
The most-traded January copper contract on the Shanghai
Futures Exchange ended up 0.7% at 54,550 yuan
($8,291.41) a tonne, after hitting its highest since Feb. 6,
2018 at 55,100 yuan a tonne earlier in the session.
"High frequency data still suggest further upside for
copper, though any disappointments on vaccine or U.S. stimulus
package can trigger profit booking," said ANZ commodities
strategist Soni Kumari.
"We see copper prices heading towards $8,000 a tonne next
U.S. President-elect Joe Biden began his transition to the
White House, bringing an end to weeks of political uncertainty,
while investors expected his $2-trillion climate plan to boost
Investor sentiment was also supported by developments on a
COVID-19 vaccine front, with positive trial results reported by
three major drug companies.
Copper stocks in ShFE warehouses <CU-STX-SGH> were at their
lowest since December 2014 at 96,766 tonnes and premiums for
imported copper into China <CU-BMPBW-SHMET> were at a one-month
high of $53 a tonne, indicating solid demand.
* The global zinc market surplus in September rose to 33,100
tonnes from 31,500 tonnes in August, data from the International
Lead and Zinc Study Group showed.
* ShFE aluminium hit its highest since Nov. 1, 2017
at 16,065 yuan a tonne and LME aluminium rose 0.3% to
$1,993 a tonne. ShFE nickel advanced 0.1% to 119,660
yuan a tonne, while LME nickel eased 0.4% to $16,185 a
* "A synchronised economic recovery next year still bodes
well for the (base metals) sector," Kumari said. "That said ...
we see supply overhang in aluminium, which leaves room for an
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($1 = 6.5791 yuan)
(Reporting by Mai Nguyen; Editing by Subhranshu Sahu and Rashmi