Copper Rises as Global Recovery Hopes Fuel Sentiment

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HANOI, April 19 Reuters Copper prices advanced on Monday as rampedup vaccine rollouts and more countries easing lockdowns boosted hopes of a steady global economic recovery and higher demand for metals.

Threemonth copper on the London Metal Exchange was up 1.9 at 9,384 a tonne by 0729 GMT, while the mosttraded June copper contract on the Shanghai Futures Exchange closed up 1.2 at 69,660 yuan 10,689.79 a tonne.

Governments of major economies have so far signalled stable policy outlook to nurture their recovery from the impacts of the pandemic, while more people are getting vaccinated against the novel coronavirus.

We expect the global economy to peak in the second half of the year, said Huatai Futures in a note, adding that global central banks might start to tighten their policies from August, pressuring risky assets.

Copper, often used as a gauge of global economic health, is also set to benefit from an expected U.S. infrastructure bill and demand from the renewable and electric vehicle sectors.

LME copper inventories fell for the second straight session, albeit only slightly, while the premium of cash copper over the threemonth contract rose to 16 a tonne, indicating tightening nearby supplies.

LME copper inventories fell for the second straight session, albeit only slightly, while the premium of cash copper over the threemonth contract rose to 16 a tonne, indicating tightening nearby supplies.

However, stockpiles of copper in ShFE warehouses hit an 11month…

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