Copper higher on demand optimism, supply concerns

LONDON — Copper rose on Monday, leading broad gains across base metals as optimism over the outlook for global growth and supply concerns helped prices recover some of the previous session’s losses.

After a half- percent drop on Friday, copper prices bounced back nearly 1%, while tin climbed to another three-month high at $20,800 a ton.

“There is general macro optimism, with some good data suggesting that global growth remains on track,” Societe Generale analyst Robin Bhar said.

“We have China data showing stability, US data has been encouraging, so has Europe,” she added. “Copper and zinc, the two most supply-constrained metals, are still being underpinned by supply fears.”

Barclays said in a note the recent copper price rally was a response to the distribution of global inventories, with tightness seen in key markets. It has raised its 2018 forecast for the LME average cash price of copper to $ 6,619 a ton, and said rallies to as high as $7,700 a ton are “both possible and likely” if certain conditions are met.

London Metal Exchange ( LME) copper closed up 0.40% at $7,068 a ton, reversing losses from the previous session. Prices last week edged down to $7,027, with the $7,000 level as yet unbroken this year.

LME tin ended the day 0.70% higher at $20,750 a ton.

LME zinc finished at $ 3,414 a ton, 0.10% lower and edging further from the 10-year peak of $ 3,444 recorded on Friday last week.

Lead, which hit a seven-year high at $2,630.50 a ton last week, closed up 1.50% at $2,620.

LME aluminum finished the day up 1.40% at $ 2,249 a ton, while nickel ended 0.30% higher at $12,760. —