BASIC METALS-Copper hits multi-year highs on Chinese demand

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BASIC METALS-Copper hits multi-year highs on Chinese demand




File image of a train transporting copper cathodes from the Chilean Chuquicamata mine.


© Reuters / Ivan Alvarado
File image of a train transporting copper cathodes from the Chilean Chuquicamata mine.


LONDON, Oct 12 (Reuters) – Copper rose on Monday, approaching its highest level in three weeks, as strong demand from China and the threat of miners’ strikes in Chile brought prices closer to the 27-month highs reached. in September.

* At 1058 GMT, three-month copper on the London Metal Exchange (LME) was up 0.2% at $ 6,773.50 a tonne, after advancing to $ 6,785.25. The metal hit 6,877.50 on September 21, 57% above the March low.

* Strong Chinese consumption has already been built into prices and earnings are likely to slow, said Kieran Clancy, an analyst at Capital Economics, warning that new coronavirus outbreaks could derail demand.

* Chile’s Escondida mine union rejected BHP’s final offer in contract negotiations, but the company said it would meet again with worker representatives to avoid a strike.

* China will invest about $ 900 billion over the next five years to develop the country’s copper-intensive power grids, state media reported on Saturday.

* Copper cathode output from Chinese smelters increased 3% in September from August, and January-September production fell 1.6% year-on-year to 6.26mt, Antaike said.

* The yuan has appreciated to its strongest level against the dollar since early 2019, making metals more affordable for Chinese buyers.

(Reporting by Peter Hobson; edited in Spanish by Janisse Huambachano)

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