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Copper advanced on Tuesday, as stronger-than-expected economic data from top consumer China lent support, though rising COVID-19 infections globally weighed on prices and assuaged expectations of a swift economic recovery.
Three-month copper on the London Metal Exchange rose 0.1% to $7,979.50 a tonne by 0322 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange increased 0.4% to 58,940 yuan a tonne.
China posted on Monday solid economic growth data in the last quarter of 2020, affirming that the world’s second-biggest economy is well on track for a recovery from the pandemic slump.
However, China on Tuesday reported more than 100 new virus cases for the seventh day in its worst domestic outbreak since last March, fuelling worries of further movement curbs that could dampen the economic recovery.
Virus infections in other major economies remained high.
LME aluminium dipped 0.1% to $1,970.50 a tonne, nickel rose 0.3% to $18,110 a tonne while zinc advanced 0.4% to $2,694 a tonne.
ShFE aluminium dropped 0.9% to 14,795 yuan a tonne and lead fell 0.7% to 14,890 yuan a tonne, while nickel advanced 0.5% to 133,870 yuan a tonne and zinc increased 0.4% to 20,345 yuan a tonne.
FUNDAMENTALS
* Aluminium’s extensive price rally of recent months is likely to stall this year as China ramps up production and creates a surplus that will offset predicted shortages in the United States, Europe and Japan.
MARKETS NEWS
* Asian shares climbed as investors wagered China’s economic strength would help underpin regional growth, even as pandemic lockdowns threaten to lengthen the road to recovery in the West.
DATA/EVENTS (GMT)
0700 Germany HICP Final YY Dec
1000 Germany Zew Economic Sentiment Jan
1000 Germany Zew Current Conditions Jan