Commodities

METALS-Copper prices advance as low inventories lend support

Credit: REUTERS/MAX ROSSI

Copper prices rose on Monday as inventories in Shanghai exchange warehouses dwindled to their lowest levels since 2009, supporting buyer sentiment and fuelling concerns over global supply shortage.

Oct 25 (Reuters) - Copper prices rose on Monday as inventories in Shanghai exchange warehouses dwindled to their lowest levels since 2009, supporting buyer sentiment and fuelling concerns over global supply shortage.

Three-month copper on the London Metal Exchange CMCU3 was up 1.9% at $9,888 a tonne, as of 0330 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 edged up 0.1% to 72,250 yuan ($461,248.72) a tonne.

ShFE copper stockpiles CU-STX-SGH fell to 39,839 tonnes, the lowest since June 2009, while LME inventories of the metal MCUSTX-TOTAL were last at 161,550 tonnes, a level unseen since June 22.

Money managers boosted their net long positions in COMEX copper contracts to 54,030 contracts, the highest since May 11.

FUNDAMENTALS

* LME cash nickel was at a premium of $118 a tonne over the three-month contract CMNI0-3, its highest since October 2019, indicating tightening nearby supplies as on-warrant stocks MNISTX-TOTAL dropped to 75,954 tonnes, the lowest since December 2019.

* The premium of LME cash zinc over the three-month contract CMZN0-3 was $51 a tonne, also suggesting shortage of readily available stocks, as on-warrant zinc inventories MZNSTX-TOTAL fell to 143,575 tonnes, the lowest since July 2020.

* LME aluminium CMAL3 rose 2.1% to $2,929.50 a tonne, nickel CMNI3 advanced 1.4% to $20,015 a tonne, zinc CMZN3 climbed 1% to $3,483 a tonne, while zinc CMZN3 fell 0.4% to $2,412.50 a tonne.

* ShFE aluminium SAFcv1 fell 1.3% to 21,725 yuan a tonne, nickel SNIcv1 fell 0.9% to 150,120 yuan a tonne and tin SSNcv1 rose 0.8% to 285,280 yuan a tonne.

* For the top stories in metals and other news, click

TOP/MTL or MET/L MARKETS NEWS

* Asian shares started steady ahead of a week packed with major quarterly earnings announcements, while the dollar hovered near October lows after three weeks of risk-friendly sentiment hurt safe-haven currencies. MKTS/GLOB DATA/EVENTS (GMT)

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($1 = 0.1566 yuan)

(Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)

((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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