METALS-Shanghai copper scales over 1-month peak on tight supply, stimulus hopes
By Brijesh Patel
April 15 (Reuters) - Copper prices in China rose to their highest in more than a month on Friday, bolstered by hopes for more stimulus measures by top metals consumer China and worries over tight supply amid the Ukraine crisis.
The most-active May copper contract on the Shanghai Futures Exchange SCFcv1 was up 1.2% at 74,820 yuan ($11,744.21) a tonne, as of 0532 GMT, after rising to its highest since March 8 at 74,980 yuan ($11,769.32) earlier in the day.
The contract is up 1.7% so far this week. The London Metal Exchange was closed for a holiday.
"The prospect of easing cycle in China is supporting the bounce in commodity prices," said Stephen Innes, managing partner at SPI Asset Management.
"Also Ukraine situation is escalating, which could trim some commodities either via logistics or sanctions, keeping the market tight."
The Chilean Copper Commission on Thursday raised its projection for 2022 copper prices to $4.40 per pound, amid a perceived scarcity due to the Russia-Ukraine conflict.
China's central bank kept borrowing costs of its medium-term policy loan unchanged, despite Beijing calling for more monetary stimulus to cushion an economic slowdown caused by new COVID-19 outbreak.
China will step up financial support for the real economy, especially industries and small firms hit by the pandemic, and will lower financing costs, the cabinet, or State Council, said in a statement this week.
INVENTORIES: Copper stocks in LME-approved warehouses MCUSTX-TOTAL are down 17% this year. The latest LME data showed that they rose 3,675 tonnes to 110,675 tonnes.
STOCKS: Aluminium stocks in LME-approved warehouses MALSTX-TOTAL are at 608,000 tonnes as of April 13, their lowest level since 2005.
ZINC: ShFE zinc SZNcv1 fell 0.7% to 28,145 yuan ($4,417.81) a tonne, but was on track for a fourth straight week of gains, up 3.8%.
OTHER METALS: ShFE aluminium SAFcv1 climbed 2.3%, nickel SNIcv1 rose 3.2%, lead SPBcv1 gained 0.3% and tin SSNcv1 declined 0.7%.
($1 = 6.3708 Chinese yuan)
(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Uttaresh.V)
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