Credit: REUTERS/MAX ROSSIBy Mai Nguyen
Oct 25 (Reuters) - Copper prices advanced on Monday, rebounding from a fall last week, as inventories in Shanghai exchange warehouses dropped to a more than 12-year low.
Three-month copper on the London Metal Exchange CMCU3 was up 1.9% at $9,885 a tonne, as of 0616 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 edged up 0.1% at 72,230 yuan ($11,314.12) 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 not seen since June 22.
"Industrial metals are recovering from last week's fall. Lower inventories and impact of power rationing on several metals in China are supporting the recovery, this is despite power supply cuts easing in some provinces," ANZ analyst Soni Kumari said.
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.
* China's Guizhou Power Grid released a document on Oct. 21 asking aluminium smelters to reduce electricity usage, Mysteel consultancy reported, further affecting supply of the metal that has been impacted by Chinese power shortage for months.
* LME aluminium CMAL3 rose 1.8% to $2,919.50 a tonne, nickel CMNI3 advanced 1.4% to $20,015 a tonne, zinc CMZN3 climbed 0.8% to $3,475 a tonne, while lead CMPB3 fell 0.4% to $2,413.50 a tonne.
* ShFE aluminium SAFcv1 fell 2.1% to 21,550 yuan a tonne, nickel SNIcv1 fell 0.9% to 150,090 yuan a tonne and tin SSNcv1 declined 0.2% to 282,450 yuan a tonne.
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($1 = 6.3841 yuan)
(Reporting by Mai Nguyen in Hanoi, Additional reporting by Tom Daly; Editing by Sherry Jacob-Phillips and Vinay Dwivedi)
((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
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