Copper Hits Record High on Tighter Supply

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HANOI, May 10 Reuters Copper prices touched record highs in both London and Shanghai markets on hopes for improved demand amid tightening supply.

Threemonth copper on the London Metal Exchange rose to an alltime high of 10,660.50 a tonne earlier in the session before easing to 10,657 a tonne, still up 2.3, at 0545 GMT.

The mosttraded June copper contract on the Shanghai Futures Exchange climbed 4.7 to 77,630 yuan 12,072.91 a tonne, after scaling a peak of 77,680 yuan earlier.

Sentiment has been boosted following record high LME prices since 2011 hit on Friday.

Bullish investors bet that demand for copper will increase further as the world economy recovers from COVID19 slumps and as investments into green energy sectors ramp up, while prices were also supported by tight supply in the concentrate market.

Prices continue to rise as the world is talking about the global recovery and the need for metals, said Malcolm Freeman, a director at UK broker Kingdom Futures, adding that the LME contract looks set to attempt 11,000 on a technical basis.

However, he noted that industrial players are not buying at this price level.

FUNDAMENTALS

ShFE aluminium surpassed 20,000 yuan a tonne, rising as much as 3.4 to 20,355 yuan a tonne, its highest since January 2010, while ShFE zinc hit its highest since March 2008 of 23,030 yuan a tonne.

LME aluminium rose 1.9 to 2,587 a tonne and zinc advanced 1.3 to 3,054.50 a tonne.

A group of 15 key copper smelters in China have agreed…

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