Copper Prices Hit Multi-year Highs On Stimulus Hopes Tight Supply

By Mai Nguyen

HANOI, Feb 10 (Reuters) - London copper prices hit an eight-year high while Shanghai copper rose to an over nine-year peak on Wednesday, as tight supply and U.S.
stimulus optimism boosted investor kynghidongduong.vn sentiment.

The three-month copper contract on the London Metal Exchange gained as much as 1.9% to $8,302.50 a tonne, its highest since Feb. 8, 2013.

The most-traded March contract on the Shanghai Futures Exchange ended 2.6% higher to 60,800 yuan ($9,445.54) a tonne, having hit as high as 60,830 yuan a tonne, its highest since Sept.

19, 2011, earlier in the session.

LME copper inventories <MCUSTX-TOTAL> were last at 76,050 tonnes, hovering near their lowest since December 2005. ShFE copper stockpiles <CU-STX-SGH> rose 9,983 tonnes this week, but were still 26% lower from end-2020.

"There are more buyers than sellers (while) inventories are low," said a commodities banker, adding there has also been a shortfall in copper concentrate.

Market sentiment was also boosted by sustained hopes the United States will soon pass a $1.9 trillion coronavirus relief bill.

ANZ said in a note the progress made in the U.S.

stimulus package "brightened the outlook for (base metals) demand."

FUNDAMENTALS

* Peru's copper production dropped 12.5% to 2.15 million tonnes in 2020, driven down by coronavirus-related restrictions.

* China's major copper smelters cut output by 10.5% month-on-month in January after racing to meet annual targets in December, research house Antaike said.

* China's new bank loans leapt to new highs in January, tour chùa yên tử boosted by seasonal demand, while broad credit growth slowed.

* LME aluminium rose 0.5% to $2,065.50 a tonne at 0729 GMT, lead edged up 0.5% to $2,088.50 a tonne while zinc increased 0.2% to $2,701.50 a tonne.

* ShFE nickel ended 1.4% higher at 136,220 yuan a tonne and zinc closed 2.2% higher at 20,495 yuan a tonne.

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($1 = 6.4369 yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich, tour yên tử ba vàng Devika Syamnath and Krishna Chandra Eluri)