Updates all through, strikes dateline from HANOI
LONDON, April 19 (Reuters) – Copper costs rose on Monday as world inventory markets gained and U.S. bond yields and the greenback fell, with many analysts and merchants anticipating the metallic to rally to new 10-year highs.
Benchmark copper CMCU3 on the London Metallic Trade (LME) was up 2.1% at $9,399.50 a tonne at 1120 GMT after touching $9,436, its highest since Feb 25.
“That February excessive” — $9,617 — “will likely be examined ultimately,” mentioned Saxo Financial institution analyst Ole Hansen, taking costs to their highest since 2011. Costs would then goal $10,000 a tonne, he mentioned.
MARKETS: World shares traded close to document highs with traders typically upbeat in regards to the prospects for a worldwide financial restoration from COVID-19. MKTS/GLOB
DOLLAR/YIELDS: Boosting copper are a fall in U.S. bond yields that has lifted equities markets and a weakening greenback, which makes metals cheaper for non-U.S. patrons. .DXYFRX/US10YT=RR
PARABOLIC: Financial restoration, ebullient markets, tight provide and a powerful demand outlook ought to assist copper, mentioned analysts at ING.
“Upside dangers (might) dominate for copper throughout 2Q21, suggesting the purple metallic might be on a parabolic run, testing earlier highs,” they mentioned.
“Nevertheless,” they added, “this energy might dampen as the present restocking cycle approaches an finish and slowing credit score development in China weighs on funding demand, which can turn out to be extra evident within the second half of this 12 months.”
POSITIONING: Speculators reduce their bullish copper positions on the Comex alternate in New York within the week to April 13, giving them larger scope to extend them once more, which might assist to raise costs.
On the LME, speculators are already increasing their lengthy place from lows earlier this month, in response to brokers Marex Spectron.
SPREAD: Provide of rapidly deliverable copper is tightening, with money copper’s premium over the three-month contract on the LME rising to $16. CMCU0-3
OTHER METALS: LME aluminium CMAL3 was up 1.1% at $2,339.50 a tonne, zinc CMZN3 rose 0.7% to $2,876.50, nickel CMNI3 was 1.1% decrease at $16,190, lead CMPB3 gained 0.1% to $2,047 and tin CMSN3 was down 0.1% at $26,600.
(Reporting by Peter Hobson; Extra reporting by Mai Nguyen; Enhancing by Kirsten Donovan)
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