Cooper Metals – METALS-Perky stock markets lift copper prices
(Updates with official prices)
LONDON, Oct 7 (Reuters) – Copper prices rose on Thursday, helped by a recovery on global equities markets, falling exchange inventories and the threat of supply disruption at a mine in Peru.
Benchmark copper on the London Metal Exchange (LME) was up 1.4% at $9,175 a tonne in official trading.
Prices have, however, fallen from a record high of $10,747.50 in May as global economic growth faltered. Copper is likely to fall further before rising demand reignites its rally, said independent analyst Robin Bhar.
“If you’re looking to trade copper until the end of the year, you’re probably on the short side. But beyond that, you’d probably be long,” he said.
MARKETS: World equities got their foot back on the gas as hopes grew that Washington can resolve its debt-ceiling squabbles and a drop in energy prices cooled fears of “stagflation”.
PERU: An indigenous community in Peru’s Espinar province plans to block a key mining road indefinitely, a local leader said.
INVENTORIES: On-warrant stocks in LME-registered warehouses fell to 82,850 tonnes from 168,075 tonnes on Sept. 21. Stocks in Shanghai Futures Exchange (ShFE) warehouses at 43,525 are the lowest since 2009. MCUSTX-TOTALCU-STX-SGH
OUTLOOK: Copper analysts are reviewing their price forecasts after turmoil in China’s construction sector and power supply.
The Bank of Japan offered its gloomiest view on regional economies in more than a year.
CHINA: Chinese markets reopen on Friday after closing for a public holiday on Oct. 1.
SURPLUS: The International Copper Study Group (ICSG) said the global copper market would see a deficit of 42,000 tonnes this year and a surplus of 328,000 tonnes in 2022.
GERMANY: German industrial output suffered its steepest drop in August since April last year, official data showed.
TECHNICALS: Copper has been hovering around its 200-day moving average around $9,150 a tonne. A move below this level would worsen its technical outlook.
OTHER METALS: LME aluminium was up 1.1% at $2,928 a tonne, zinc rose 0.6% to $3,033, nickel gained 0.9% to $18,235 and lead was 0.1% higher at $2,153.
Tin was down 0.1% at $35,125.
Reporting by Peter Hobson Additional reporting by Mai Nguyen in Hanoi Editing by Emelia Sithole-Matarise and Mark Potter
Cooper Metals- METALS-Perky stock markets lift copper prices
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