Copper prices rose overnight after US President Donald Trump said a trade deal with China was “fully intact” and stronger-than-expected European and US data bolstered hopes of a rapid economic recovery.
Benchmark copper on the London Metal Exchange was up 0.5 per cent at $US5,907 a tonne at 1630 GMT, nearing a five-month high of $US5,928 reached earlier in June.
The metal used in power and construction has surged 35 per cent from a low in March.
Powering that rise is an almost total recovery of demand in top consumer China and increasing supply disruption in Chile, the biggest producer, said Julius Baer analyst Carsten Menke.
But he said prices were unlikely to return quickly to January’s pre-COVID high of $US6,343.
President Trump contradicted a comment by White House trade adviser Peter Navarro that the US-China trade deal was over.
Equities and oil prices rose after European Purchasing Managers’ Indexes (PMIs) outperformed expectations. US housing and business activity data also improved.
Miner Codelco said it would implement new measures to maintain operations amid increasing worker angst over the fast-spreading coronavirus.
On-warrant copper inventories in LME-registered warehouses fell by nearly 4,000 tonnes to 121,125 tonnes, the lowest since February.
China’s copper demand was 1.6 per cent higher in May than in May 2019, analysts at Citi said. Chinese Yangshang copper import premiums rose to $US102.50 from $US80 a week ago.
Global lead and zinc markets were in surplus in April, data from the International Lead and Zinc Study Group showed.
Demand for lead-acid batteries from hospitals and food producers seeking more backup power during the coronavirus pandemic is helping battery and lead producers weather a collapse in orders from the auto sector.
The United States plans to re-impose tariffs on aluminium imports from Canada, Bloomberg reported, citing sources.
China’s aluminium imports more than doubled year-on-year in May.
LME aluminium was down 0.7 per cent at $US1,592 a tonne, zinc fell 2.3 per cent to $US2,039, nickel rose 0.5 per cent to $US12,715, lead dropped 1.5 per cent to $US1,751 and tin was flat at $US16,855.