Copper rises on funds inflow, potential supply shortage

Apr 25, 202403:20 UTC

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Copper prices edged higher on Thursday, as the metals market saw an extended inflow of money through investment funds, while a forecast of potential deficit in the refined copper market this year also lent support.

Three-month copper on the London Metal Exchange (LME) HG1! was up 0.2% at $9,795.50 per metric ton, as of 0222 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) HG1! advanced 0.7% to 79,210 yuan ($10,932.15) a ton.

"Fund buying was still relentless during the U.S. session ... and after a slightly weaker opening, Asian funds seem to be follow through too on this wave of buying," said a trader.

A slightly weaker dollar index DXY helped make greenback-priced metals cheaper to holders of other currencies.

Analysts in Goldman Sachs forecast the global refined copper market is likely to see a deficit of 428,000 tons in 2024 and expect copper prices in London to hit $12,000 a ton within the next 12 months.

In China, the Yangshan premium assessed by SMM (SMM-CUYP-CN) has dropped to zero for the first time on record, indicating weak appetite to import copper into China, following a surge in prices.

LME aluminium ALI1! dropped 0.9% to $2,579.50 a ton, nickel NICKEL1! eased 0.5% to $18,850, zinc ZNC1! was nearly flat at $2,804, lead LEAD1! rose 0.2% to $2,200, and tin FTIN1! fell 0.5% to $31,690.

SHFE aluminium ALI1! rose 1.1% to 20,370 yuan a ton, nickel NICKEL1! advanced 0.6% to 142,210 yuan, zinc ZNC1! edged up 0.2% at 22,500 yuan, lead LEAD1! was up 0.5% at 17,095 yuan and tin FTIN1! increased 0.6% to 255,710 yuan.

In company news, London-listed miner Anglo American AAL said it had received an all-share buyout proposal from BHP Group BHP.