BEIJING, Apr 10 (Reuters) – A strong comeback on Friday afternoon pushed copper prices in Shanghai to highs of more than three weeks and their biggest weekly rise in 22 months, thanks to signs of a recovery in demand for China, the largest global consumer, and a decrease in supplies in the world.
* The metal gained 3.7% in the week, registering its third consecutive weekly rise as well as its biggest weekly advance since June 8, 2018. However, it accumulates a drop of 17.1% in the year, weighted down due to the coronavirus pandemic.
* Demand in China initially fell due to the virus, “but now they are driving infrastructure projects in the country, factories are restarting, construction activity is picking up, traffic congestion is increasing, and pollution too,” he said. Jefferies on a note.
* “All of this suggests that demand in China is clearly improving from a very low base,” the brokerage said, adding that the initial blow should now become “a more substantial impact on supply.”
* A total of 2.4 million tonnes of annual copper capacity, or 12% of the world’s supply of mines, has temporarily closed due to virus-related restrictions, estimates Jefferies.
* The London Metal Exchange is closed on Friday and will be closed on April 13 due to Easter.
* The Shanghai copper contract for May rose as much as 2.6% during the afternoon of the Asian session to 41,980 yuan ($ 5,957.92) per tonne, its highest level since March 17, before closing at 41,790 yuan.
* Miner MMG Ltd has declared force majeure on its supplies of copper concentrate from its Las Bambas mine in Peru, four sources told Reuters.
* Among other base metals in Shanghai, nickel and tin rose 2.3% and 3.4%, respectively, following Thursday’s gains in London. Aluminum gained 1.8%, zinc advanced 0.3%, and lead appreciated 1%.
* To see the prices of the base metals futures in Shanghai:
(1 dollar = 7.03098 Chinese yuan)
(Report by Tom Daly; Edited in Spanish by Ricardo Figueroa)
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