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Copper leapt on Wednesday on hopes of a massive stimulus package under the incoming administration of U.S. President-elect Joe Biden, with a weaker dollar boosting the appeal of greenback-priced metals.
The metal, often used as a gauge of global economic health, gained further after China’s customs data showed its imports of copper concentrate from Australia dried up completely in December amid tense bilateral ties.
Three-month copper on the London Metal Exchange CMCU3 climbed 1.1% to $8,039.50 a tonne by 0715 GMT.
The most-traded March copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading 0.3% higher at 59,120 yuan ($9,144.20) a tonne.
Ahead of Biden’s inauguration, Treasury Secretary nominee Janet Yellen urged lawmakers to “act big” on the next coronavirus relief package.
“The expectation of (an) aggressive fiscal policy is still relatively favourable for copper prices,” analysts at Huatai Futures in China wrote in a note.
“After the current low consumption season, the outlook for copper prices may still be relatively promising.”
The dollar was under pressure partly due to the renewed focus on U.S. pandemic relief spending.
Base metals in Shanghai see-sawed throughout the session, reflecting caution as top metals consumer China stepped up COVID-19 restrictions, with Beijing reporting the biggest daily jump in new cases in more than three weeks.
LME aluminium CMAL3, which marked a fifth straight session of falls on Tuesday and hit a two-month low as inventories and production climbed, gained 0.8% to $1,980 a tonne. Shanghai aluminium SAFcv1 slipped 0.1%.
LME nickel CMNI3 fell 0.1% to $18,190 a tonne, while LME zinc CMZN3 rose 0.7% to $2,705.50 a tonne. LME lead CMPB3 rose 0.7% to $2,030 a tonne.
Shanghai nickel CMNI3 added 0.1%, Shanghai zinc SZNcv1 climbed 0.3%, and Shanghai lead SPBcv1 jumped 1.6%.
Indonesia ended up as China’s second-biggest nickel ore supplier in 2020, despite its ban on exports of the material.
Source: Reuters