Commodities

METALS-Perky stock markets lift copper prices

Credit: REUTERS/KHAM

Copper prices rose on Thursday, helped by a recovery on global equities markets, falling exchange inventories and the threat of supply disruption at a mine in Peru.

Updates throughout, adds LONDON dateline

LONDON, Oct 7 (Reuters) - Copper prices rose on Thursday, helped by a recovery on global equities markets, falling exchange inventories and the threat of supply disruption at a mine in Peru.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 1.5% at $9,180 a tonne at 1115 GMT.

Prices have, however, fallen from a record high of $10,747.50 in May as global economic growth faltered. Copper is likely to fall further before rising demand reignites its rally, said independent analyst Robin Bhar.

"If you're looking to trade copper until the end of the year, you're probably on the short side. But beyond that, you'd probably be long," he said.

MARKETS: World equities got their foot back on the gas as hopes grew that Washington can resolve its debt-ceiling squabbles and a drop in energy prices cooled fears of "stagflation". MKTS/GLOB

PERU: An indigenous community in Peru's Espinar province plans to block a key mining road indefinitely, a local leader said.

INVENTORIES: On-warrant stocks in LME-registered warehouses fell to 82,850 tonnes from 168,075 tonnes on Sept. 21. Stocks in Shanghai Futures Exchange (ShFE) warehouses at 43,525 are the lowest since 2009. MCUSTX-TOTAL, CU-STX-SGH

OUTLOOK: Copper analysts are reviewing their price forecasts after turmoil in China's construction sector and power supply.

The Bank of Japan offered its gloomiest view on regional economies in more than a year.

CHINA: Chinese markets reopen on Friday after closing for a public holiday on Oct. 1.

SURPLUS: The International Copper Study Group (ICSG) said the global copper market would see a deficit of 42,000 tonnes this year and a surplus of 328,000 tonnes in 2022.

GERMANY: German industrial output suffered its steepest drop in August since April last year, official data showed.

TECHNICALS: Copper's 200-day moving average is around $9,150 a tonne. A move below this level would worsen its technical outlook.

OTHER METALS: LME aluminium CMAL3 was up 0.8% at $2,918.15 a tonne, zinc CMZN3 rose 0.4% to $3,026.50, nickel CMNI3 gained 0.5% to $18,160 and tin CMSN3 was up 1% at $35,505.

Lead CMPB3 was down 0.1% at $2,149.50.

(Reporting by Peter Hobson, additional reporting by Mai Nguyen in Hanoi; Editing by Emelia Sithole-Matarise)

((Peter.Hobson@thomsonreuters.com; +44 207 542 0083;))

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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