By Eric Onstad
LONDON, Dec 29 (Reuters) – Copper prices climbed to their highest in a month on Wednesday, boosted by year-end trading, friendly sentiment for risky assets and arbitrage buying.
Three-month copper CMCU3 on the London Metal Exchange, which was closed on Monday and Tuesday for public holidays, had gained 0.5% to $9,616 a tonne by 1100 GMT. It earlier hit $9,706, its highest since Nov. 26.
“The trade is standing away, but some of the long-term players are still in this. I think they’re pushing things up for year-end valuations and you’re going to see no real resistance,” said Malcolm Freeman at Kingdom Futures.
European stocks were close to five-week highs and oil prices also rose. MKTS/GLOB
An arbitrage opportunity between COMEX and LME copper also supported the metal, a Singapore-based trader said.
The most-traded February copper contract on the Shanghai Futures Exchange SCFcv1, however, ended daytime trading 0.2% lower at 70,200 yuan ($11,017.47) a tonne, after scaling a one-month high on Tuesday.
* Metals traded on the Shanghai exchange are expected to decline from this year’s highs, but will still find demand support from top metals consumers China and remain above pre-COVID-19 levels.
* China’s top copper smelters kept floor treatment and refining charges for copper concentrate in the first quarter of 2022 flat from the previous quarter, two people with knowledge of the matter said on Wednesday.
* LME aluminium CMAL3 dropped 0.9% to $2,811 a tonne, retreating from a two-month high hit on Dec. 24, while zinc CMZN3 shed 0.9% to $3,487.50.
* Lead CMPB3 slipped 0.4% to $2,268.50, tin CMSN3 dipped 0.4% to $39,110, but nickel CMNI3 advanced 0.4% to $20,115.
($1 = 6.3717 yuan)
(Additional reporting by Enrico Dela Cruz in Manila; Editing by Alison Williams)
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