HANOI, May 11 (Reuters) - London copper prices climbed on Tuesday, as traders bet on demand prospects from metal-reliant renewable energy and electric vehicles (EV) sectors and as the global economy steadily recovers from the fallout of the COVID-19 pandemic.
Three-month copper on the London Metal Exchange was up 0.9% at $10,470 a tonne, as of 0701 GMT, inching closer to a record peak of $10,747.50 notched in the previous session.
The most-traded June copper contract on the Shanghai Futures Exchange closed 1% lower at 76,000 yuan ($11,819.23) a tonne, clawing back from early losses of 2.5%.
“The continued strengthening of the global economy, at the same time as governments are intent on increasing stimulus measures is driving sentiment higher,” ANZ analysts said in a report.
Copper is also drawing investors looking to benefit from the renewable energy and EV sectors that are expected to boost demand, they added.
FUNDAMENTALS
* A union representing workers at BHP Group’s Escondida and Spence copper mines in Chile has called for a strike vote among its members after contract negotiations stalled.
* A shortage of copper and dwindling inventories in the long-term are likely to propel prices of the industrial metal to levels beyond current record highs, unless scrap supplies rise significantly, analysts said.
* ShFE copper speculative net long rose to 52.8% of open interest on Monday, the highest since the position rose to an 18-year high of 57.9% in February, from Friday’s 47.4%, Marex Analytics data showed.
* About 50%-80% of LME copper warrants are currently held by one party. <0#LME-WHL>
* More than 90% of LME tin inventories and short-term futures are currently held by a single party. <0#LME-WHT>
* LME aluminium rose 1.1% to $2,557.50 a tonne, ShFE zinc fell 1.3% to 22,515 yuan a tonne, while ShFE nickel dropped 1.4% to 131,690 yuan a tonne.
($1 = 6.4302 yuan)
(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips and Vinay Dwivedi)
Source: Reuters