METALS-Copper rises towards 10-year highs as bullish mood grips markets

  • 3/11/2021
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(Updates prices) LONDON, March 11 (Reuters) - Copper prices rose on Thursday towards 10-year highs hit last month as a bumper U.S. stimulus bill, benign U.S. inflation and jobs data and better than expected Chinese lending numbers spread a bullish mood through markets. With Chinese equities up around 2.5%, the U.S. Dow Jones Index at record levels and European stocks reaching a one-year high, benchmark copper on the London Metal Exchange (LME) was up 2.5% at $9,081 a tonne at 1709 GMT. Copper, used in power and construction, reached $9,617 a tonne in February as analysts warned that demand from China, green energy and electrification will outstrip supply. But those demand expectations may be too rosy, particularly as China reins in spending on infrastructure and demographic change begins to reduce the proportion of its people in work, said Julius Baer analyst Carsten Menke. He predicted that prices would trade between $8,000 and $10,000. CHINA: Boosting confidence in Chinese demand was official data showing that new bank lending in China fell less than expected in February. AUTOS: Chinese auto sales also surged 365% year-on-year in February for their 11th month of gains. OUTPUT: Large Chinese copper smelters raised their cathode output by 3.3% in February from January, researchers Antaike said. STIMULUS: The U.S. House of Representatives gave final approval on Wednesday to one of the largest economic stimulus measures in American history. JOBS: The number of Americans filing new claims for jobless benefits dropped to a four-month low last week. ECB: The European Central Bank said it would accelerate money-printing. LEAD: Lead inventories in LME-registered warehouses rose 22% to 115,700 tonnes and the proportion already earmarked for delivery fell sharply. Benchmark prices were up 0.7% at $1,959.50 a tonne. TIN: LME tin was 3% higher at $25,865 as the premium for cash metal versus the three-month contract continued to soar, pointing to an acute shortage of quickly deliverable material. CMSN0-3 OTHER METALS: LME aluminium was up 0.5% at $2,179.50 a tonne, zinc rose 2.3% to $2,827 and nickel gained 1.3% to $16,260. (Reporting by Peter Hobson, Additional reporting by Mai Nguyen; Editing by Emelia Sithole-Matarsie and Elaine Hardcastle)

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