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London copper hit a two-week peak on Tuesday, and zinc jumped to its highest in more than a month, as hopes for more stimulus from China and low inventory-led supply worries lifted prices.
Benchmark three-month copper CMCU3 on the London Metal Exchange (LME) rose 1.4% to $10,455.50 a tonne by 0717 GMT as trading resumed after a long holiday weekend.
The most-active May copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading up 0.2% at 75,040 yuan ($11,773.57), its fifth straight session of gains.
LME zinc CMZN3 was up 1.5% at $4,475 a tonne after hitting its highest since March 8 at $4,540, in early Asian trade.
China will step up financial support for industries, firms and people affected by COVID-19 outbreaks, the central bank said on Monday in measures to cushion its economic slowdown.
Adding to supply concerns, MMG Ltd 1208.HK said on Monday its Las Bambas copper mine in Peru would suspend operations from April 20 after residents of a community nearby entered the property as part of a protest.
“Renewed supply disruption at Las Bambas copper mine should keep prices supported,” commodity strategists at ANZ said in a note. The Las Bambas mine accounts for 2% of the global copper supply.
STOCKS: Zinc inventories in LME-registered warehouses MZNSTX-TOTAL had fallen to their lowest since June 2020 at 115,600 tonnes, as of April 13.
“Zinc held in LME inventories has more than halved over the past year. This raises the risk of a short squeeze, as happened in nickel last month,” ANZ’s note added.
COPPER: Copper inventories in warehouses monitored by the Shanghai Futures Exchange CU-STX-SGH have fallen to a two-month low at 88,682 tonnes.
NICKEL: The global nickel market saw a surplus of 10,500 tonnes in February, compared with a deficit of 5,700 tonnes in the same month last year, data from the International Nickel Study Group showed on Monday.
COVID: Mainland China reported 21,600 new COVID-19 cases on April 18, of which 3,316 were symptomatic and 18,284 were asymptomatic, the National Health Commission said on Tuesday.
OTHER METALS: LME aluminium CMAL3 climbed 1.7% to $3,341.50 a tonne, nickel CMNI3 edged 0.2% lower to $33,125, lead CMPB3 eased 0.1% to $2,433, while tin CMSN3 gained 0.2% at $43,150.
Shanghai aluminium SAFcv1 climbed 0.5%, nickel SNIcv1 jumped 3.3%, lead SPBcv1 eased 0.3%, while tin SSNcv1 rose 1.1%.