Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Copper hits near 6-week peak on China floods, equities rout

07/26/2021 | 02:08am EDT

July 26 (Reuters) - Copper hit its highest in nearly six weeks on Monday, as investors sold equities for more attractive assets, with prices further supported by supply worries and hopes of more metals' demand for rebuilding infrastructure after floods in China.

Three-month copper on the London Metal Exchange rose by 1.1% to $9,620 a tonne by 0712 GMT, after gaining as much as 1.6% to $9,665 a tonne, its highest since June 16.

The most-traded September copper contract on the Shanghai Futures Exchange closed up 1.7% at 70,770 yuan ($10,914.39) a tonne, after hitting a June 15 high of 71,150 yuan a tonne earlier in the session.

Chinese shares slumped as education and property sectors dropped on worries over heavy-handed government regulations, making commodities such as metals an attractive alternative investment.

Floods in central China, especially in the industrial and transport hub city of Zhengzhou in Henan province, have raised supply concerns and demand for rebuilding damaged infrastructure, which will consume industrial metals.

"Because of the crackdown in regulation... market switched away from equities to metals. So, ShFE fresh buying has been relentless," said a Singapore-based trader, adding that metals benefit from reflation trade.

"Market is also pricing in disruptions to output from Henan floods and demand for reconstruction," the trader said.

FUNDAMENTALS

* ShFE nickel hit a five-month high at 146,870 yuan a tonne, aluminium reached its highest since May 19 of 19,750 yuan a tonne while lead fell 1.2% to 16,065 yuan a tonne.

* LME nickel touched its highest since Feb. 25 at $19,645 a tonne, while tin fell 0.9% to $34,200 a tonne.

* ShFE copper inventories <CU-STX-SGH> fell to their lowest since Feb. 10 at 96,087 tonnes while the Yangshan copper premium <SMM-CUYP-CN> rose to a 11-week high of $43 a tonne, indicating improving demand for imported metal.

* For the top stories in metals and other news, click or

($1 = 6.4841 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M, Kim Coghill, Uttaresh.V and Louise Heavens)


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
MSCI SINGAPORE (GDTR) -0.43% 6532.371 Real-time Quote.12.38%
S&P GSCI ALUMINUM INDEX 0.21% 183.3513 Delayed Quote.45.28%
S&P GSCI INDUSTRIAL METALS INDEX 0.03% 486.8557 Delayed Quote.29.10%
UNITED STATES DOLLAR (B) / CHINESE YUAN IN HONG KONG (USD/CNH) -0.02% 6.4481 Delayed Quote.-0.70%
Latest news "Economy & Forex"
12:29aJapan must fill $200 billion output gap, PM contender Kono says
RE
12:17aEXCLUSIVE : Tougher EU airport slot rules trigger Asia retaliation threat, risk industry trade war
RE
12:16aEMEA MORNING BRIEFING : Stocks to Open Higher as -2-
DJ
12:16aEMEA MORNING BRIEFING : Stocks to Open Higher as Investors Weigh Economic Growth
DJ
12:16aNEWS HIGHLIGHTS : Top Financial Services News of the Day
DJ
12:11aOil dips as U.S. storm-hit supply makes slow return
RE
12:07aGold inches higher; set for weekly loss as dollar holds firm
RE
12:05aWITH TIGHTER GRIP, BEIJING SENDS MESSAGE TO HONG KONG TYCOONS : fall in line
RE
12:04aDollar stays near 3-week high after retail sales boost
RE
12:02aCalifornia governor signs into law measure to fight housing crisis
RE
Latest news "Economy & Forex"