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Prices of copper and aluminium in China touched a one-week high on Thursday, bolstered by the likelihood of more stimulus measures by the top metals consumer and firmer risk appetite in broader Asian financial markets.
The most-traded April copper contract on the Shanghai Futures Exchange was up 1% at 72,370 yuan ($11,400.80) a tonne, as of 0540 GMT, while aluminium gained 2.3% to 22,185 yuan. Earlier in the session, both metals touched a peak since March 9.
Three-month aluminium CMAL3 on the London Metal Exchange (LME) was 1.4% higher at $3,303.5 a tonne.
Chinese vice premier Liu He on Wednesday urged government bodies to roll out market-friendly policies and “cautiously” introduce measures that risk hurting markets, allaying some fears of a slowdown due to the resurgence in coronavirus cases.
“Everyone is encouraged by the meeting yesterday and also in general the market is on a risk-on mood,” said Hao Hong, head of research at BOCOM International.
This year the supply picture in China is expected to be better than last year with limits on production being relaxed while demand looks stronger with investment growth, especially in infrastructure which tends to consume lots of materials, he added.
Investors also keenly watched signs of compromise and progress at ongoing talks between Russia and Ukraine.
Concerns that the conflict in eastern Europe and mounting sanctions on Moscow would interrupt metal flows and raise the cost of gas had boosted metals prices.
Nickel CMNI3 was not trading on the LME during Asia hours and was scheduled to open at 8 a.m. London time each business day until further notice.
LME was forced to halt nickel trading on its electronic system within a minute of opening on Wednesday due to a technical glitch and when it resumed in the afternoon there were very few trades. The exchange also widened its nickel trading limit to 8%.