Commodities

METALS-London copper surpasses $9,000/T for first time since Sept 2011

Credit: REUTERS/Moritz Hager

London copper prices extended gains on Monday to cross the $9,000-a-tonne level for the first time since September 2011, driven by a weaker dollar and hopes that demand in top consumer China will pick up after the Lunar New Year holiday break.

By Mai Nguyen

HANOI, Feb 22 (Reuters) - London copper prices extended gains on Monday to cross the $9,000-a-tonne level for the first time since September 2011, driven by a weaker dollar and hopes that demand in top consumer China will pick up after the Lunar New Year holiday break.

Three-month copper on the London Metal Exchange CMCU3 climbed as much as 3.3% to $9,199 a tonne, the highest since September 2011. The contract is now 10% below the all-time high of $10,190 a tonne touched in February 2011.

The most-traded April copper contract on the Shanghai Futures Exchange SCFcv1 advanced as much as 6% to 67,370 yuan ($10,428.15) a tonne, its highest since August 2011.

"With the Lunar New Year holidays having just ended, we expect pricing to rise," said Canaccord Genuity analysts in a note, referring to China's holidays during Feb. 11-17, when business and construction activity are typically slow.

"While some of the latest moves appear to be speculative, the key sentiment drivers remain the same," the note said, adding that liquidity, stimulus, weaker dollar and limited supplies also lent support to the red metal.

The dollar .DXY fell to a three-year low, making greenback-priced LME metals cheaper to holders of other currencies.

FUNDAMENTALS

* LME cash copper was at a $37.25-a-tonne premium over the three-month contract CMCU0-3, the highest since Sept. 18, indicating tight nearby supplies.

* Rapidly rising tin demand from electronic companies and low inventories coupled with supply and shipping disruptions will likely support prices of the shouldering metal in the near term.

* ShFE tin SSNcv1 leaped as much as 8.6% to a record high of 194,030 yuan a tonne. LME tin CMSN3 hit its highest since August 2011 at $27,000 a tonne.

* LME nickel CMNI3 rose 2.1% to $19,995 a tonne at 0510 GMT, while ShFE nickel SNIcv1 advanced 4.2% to 147,980 yuan a tonne and SHFE zinc SZNcv1 increased 2.4% to $22,035 a tonne.

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

TOP/MTL or MET/L

($1 = 6.4604 yuan)

Copper prices hit the highest in over 9 years, edging near their record peakshttps://tmsnrt.rs/3pGbtVs

(Reporting by Mai Nguyen; Editing by Subhranshu Sahu and 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.

Latest Commodities Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More