Copper rides on China data, lower inventories

LONDON— Copper hit its highest in over five weeks on Friday, helped by concerns over supply from Chile, recent data pointing to robust import demand in China and falling stocks of the metal.

Three- month copper on the London Metal Exchange (LME) ended 1.30% higher at $ 5,804 a ton, after touching $ 5,813, its highest since May 2.

Copper, used in power and construction, made its biggest weekly gains since mid- March, ending about 2.50% higher.

“Chinese trade data registered another surplus in May, its helped coax copper prices higher,” said Kash Kamal, a commodities analyst at Sucden Financial. “Still, the tentative macro environment and stronger dollar outlook is likely to cap gains on the upside and we have a limited view on additional upside potential.”

Falling stocks of copper support the price. Copper inventories in LME warehouses fell 9,475 tons on Friday to 276,875 tons and are down almost 20% from a seven-month high May.

China reported stronger-thananticipated exports and imports for May on Thursday, despite falling commodity prices, indicating the economy is holding up better than expected despite rising lending rates and a cooling property market. Chilean copper company Codelco has restarted operations at mines in the northern part of the country after a rain storm caused a series of precautionary closures.

“Copper, which broke the recent daily downtrend yesterday and closed strongly, held the momentum today to challenge $5,800 area as shorts covered and supported again by further LME stock declines,” Sucden said in a note.

British voters dealt Prime Minister Theresa May a devastating blow in a snap election, wiping out her parliamentary majority and throwing the country into political turmoil. Sterling spiraled lower as British elections left no single party with a clear claim to power, sideswiping investors who had already weathered major risk events in the United States and Europe.

Benchmark aluminum down 1.40% on the week, on track to clock its worst week since mid-April. It was up 0.30% on Friday at $1,907 per ton.

LME zinc rebounded from a seven- month low of $ 2,427.50 touched on Wednesday. It was 2.70% higher at $2,533 a ton.

Nickel closed 1.90% higher at$8,980 a ton, lead rose 0.40% to $ 2,099, while tin fell 2% to $18,800.