HANOI, Feb 26 (Reuters) - Copper fell on Friday as a
week-long rally in base metals ran out of steam, but the metal
was on track for its best month since November 2016 on low
inventories and bright demand outlook.
Three-month copper on the London Metal Exchange shed
2% to $9,226 a tonne by 0705 GMT, but was up 17.5% so far in
On Thursday, LME copper hit its highest since August 2011 of
$9,617 a tonne, 5.6% below its record high of $10,190 marked in
The most-traded April copper contract on the Shanghai
Futures Exchange closed down 2.1% at 67,950 yuan
($10,507.68) a tonne, but marked its best month since November
"Investor sentiment towards base metals - particularly
towards green transition metals such as copper, nickel and
lithium - remains very positive for now, which is likely to push
prices even higher in the near term," Fitch Solutions said in a
"However, we believe that base metal prices will soon peak
and ease later in the year. The current rally in prices is being
driven by overly bullish sentiment towards the COVID-19 demand
recovery and decarbonisation trends, and we believe a more
nuanced fundamental picture will emerge in the coming quarters."
Shanghai aluminium bucked the trend, rising 1.4% to close at
its highest since September 2011 at 17,465 yuan a tonne, on
solid demand and fears of supply disruptions from China's Inner
Mongolia region, traders said.
* Peru's Southern Copper Corp plans to push forward
new and pending projects as demand from China and constrained
supply generally help propel a global price rally, an executive
* LME aluminium fell 1% to $2,213 a tonne, zinc
declined 1.4% to $2,849 a tonne and tin dropped
3.1% to $256,005 a tonne.
* ShFE nickel shed 3.2% to 140,490 yuan a tonne and
ShFE tin tumbled 4.5% to 184,400 yuan a tonne.
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($1 = 6.4667 yuan)
(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips,
Rashmi Aich and Subhranshu Sahu)