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Last Trade - 09/04/21

Sector
Basic Materials
Size
Large Cap
Market Cap £5.95bn
Enterprise Value £6.37bn
Revenue £1.49bn
Position in Universe 120th / 1831

METALS-Strong factory data keeps copper's rally at full steam

Tue 1st December, 2020 12:25pm
(Updates throughout, adds LONDON dateline)
    LONDON, Dec 1 (Reuters) - Copper prices on Tuesday pushed
back towards Monday's 7-1/2-year high as data showed
manufacturing expanding rapidly in Europe and Asia in November.
 urn:newsml:reuters.com:*:nL4N2IH0SG  urn:newsml:reuters.com:*:nL8N2IG2LI  urn:newsml:reuters.com:*:nZRN000B3R
    Factory activity in China, the biggest metals user,
accelerated at the fastest pace in a decade.  urn:newsml:reuters.com:*:nZUN000BNQ
    Benchmark copper  CMCU3  on the London Metal Exchange (LME)
was up 0.8% at $7,643.50 a tonne at 1215 GMT after reaching
$7,708.50 on Monday, the highest since early 2013. 
    Global share prices also rose and the dollar weakened as
investors cheered by the discovery of effective coronavirus
vaccines continue to plough money into assets that benefit from
economic growth. 
    LME aluminium  CMAL3  hit a two-year high of $2,063 a tonne
before slipping to $2,053.50, up 0.3%.  
    Copper prices have rebounded from a low of $4,371 in March
as governments pumped money into markets and speculators bought
into the rally. 
    "We are aiming for a $8,200 short term target," said
Gianclaudio Torlizzi, a partner at consultants T-Commodity. 
    "The upside has been justified by the break above resistance
at $7,350. That prompted funds to go long and shorts to cover,
giving some fuel to the rally," he said. 
    Copper prices are likely to be volatile and peak in the
first quarter of next year, he said, but, for now, "every dip
has to be bought". 
    
    DEMAND: Booming sales of fridges, toasters and microwaves to
households across the locked-down world have helped propel
China's mammoth manufacturing engine back to life.  urn:newsml:reuters.com:*:nL4N2I9237
    CHINA PREMIUMS: Yangshan copper import premiums rose to $56
a tonne from $46 in mid-October, pointing to higher Chinese
demand for overseas metal.  SMM-CUYP-CN  
    VACCINES: Pfizer and Moderna are applying for authorization
of their COVID-19 vaccines.  urn:newsml:reuters.com:*:nL8N2IH1SB
    POSITIONING: Speculative investors hold a net long position
in LME copper equal to 24% of open contacts, the highest since
November 2017, brokers Marex Spectron said.  
    LUNDIN: Canadian miner Lundin Mining Corp  LUN.TO  said its
2021 copper production would increase 25% to between 275,000
tonnes and 299,000 tonnes and its zinc output would also rise.
 urn:newsml:reuters.com:*:nL4N2IG56R
    OTHER METALS: LME zinc  CMZN3  was flat at $2,790 a tonne,
nickel  CMNI3  was 0.3% higher at $16,075, lead  CMPB3  was
unchanged $2,070 and tin  CMSN3  was up 1% at $18,800. 
    

 (Reporting by Peter Hobson, Additional reporting by Mai Nguyen,
editing by Ed Osmond)
 ((mai.nguyen@thomsonreuters.com; +6568703518; Reuters
Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
 
(( For related news and prices, click on the codes in brackets:
 LME price overview       RING=  COMEX copper futures   0#HG: 
 All metals news          MTL    All commodities news       C  
 Foreign exchange rates  FX=     SPEED GUIDES  LME/INDEX ))
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