July 7, 2020 / 8:10 AM / in a month

METALS-Shanghai copper hits 2020 high on China revival hopes, supply fears

(Recasts; updates prices)

By Mai Nguyen

SINGAPORE, July 7 (Reuters) - Shanghai copper prices hit a 2020 high on Tuesday as hopes of an economic recovery in China and supply fears underpinned sentiment, while the metal also hit a five-month peak in London before shedding gains.

The most-traded August copper contract on the Shanghai Futures Exchange rose as much as 1.5% to 49,620 yuan ($7,074.02) a tonne, its highest since Dec. 30, before closing up 1% on 49,360 yuan.

“Revived activities in China, fiscal stimulus and supply issues have benefited industrial metals, especially copper,” ANZ said in a note, referring to supply risks in top producer Chile.

“Although Chinese indicators are looking good for demand in coming months, we believe the recovery will be vulnerable until the world adjusts to COVID-19.”

Three-month copper on the London Metal Exchange climbed as much as 0.7% to $6,172.50 a tonne, its highest since Jan. 22, but was down 0.3% at $6,112 a tonne by 0745 GMT.


* SCRAP: China has approved imports of another 176,746 tonnes of high-grade copper scrap and 209,660 tonnes of aluminium scrap in 2020.

* LME: LME copper inventories MCUSTX-TOTAL fell to their lowest since March 13 at 197,850 tonnes, and the premium of LME cash copper over the three-month contract CMCU0-3 rose to $6.75 a tonne, indicating tight nearby supplies.

* CHINA: The Yangshan copper premium SMM-CUYP-CN fell to its lowest since June 17 at $92.5 a tonne.

* ALUMINIUM: The spread between cash ShFE and LME aluminium eased from the highest since January 2014 hit on Monday.

* OTHER PRICES: LME aluminium fell 0.1% to $1,633 a tonne, while zinc eased 0.7% to $2,049.50 a tonne. ShFE nickel closed up 1.1% at 107,070 yuan a tonne.


The Chinese share market extended its positive run, in line with the mainland government’s push for a stronger market, while the rest of the region turned cautious on equities.

$1 = 7.0144 yuan Reporting by Mai Nguyen; additional reporting by Tom Daly in Beijing; Editing by Subhranshu Sahu and Sherry Jacob-Phillips

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