Metals: Copper rises as positive China data boosts demand outlook

MMTec

13/07/2021 07:46

(Updates prices, adds quotes)
    By Mai Nguyen
    July 13 (Reuters) - Copper advanced on Tuesday as
better-than-expected trade data from top consumer China lifted
demand outlook for the metal, even as physical demand was tepid
due to high material prices.
    Three-month copper on the London Metal Exchange  CMCU3  was
up 0.7% at $9,472 a tonne, as of 0627 GMT, while the most-traded
August copper contract on the Shanghai Futures Exchange  SCFcv1 
dipped 0.4% to 69,190 yuan ($10,698.93) a tonne.
    China's exports grew much faster than expected in June, as
solid global demand led by easing lockdown measures and
vaccination drives worldwide eclipsed virus outbreaks and port
delays, customs data showed.  urn:newsml:reuters.com:*:nL1N2OP04F
    The country's overall imports also beat expectations last
month, though the pace of gains eased from May, with the values
boosted by high raw material prices, the data showed.
    The China data boosted metals, a Singapore-based trader
said, adding that prices have already consolidated at lower
price levels. So, if the dollar falls, prices will likely rise.
    However, copper prices were under pressure by weak demand
from some downstream users as their margin was hurt by the
metal's price rally which hit record levels in May.
    "Demand is not really good due to high copper prices. It's
worse than last year. The second half of this year may be
better... if delayed projects in infrastructure and grid
companies start to place orders," said CRU analyst He Tianyu.
    
    FUNDAMENTALS
    * LME aluminium  CMAL3  rose 0.8% to $2,510 a tonne and
nickel  CMNI3  increased 0.9% to $18,840 a tonne, while lead
 CMPB3  fell 0.8% to $2,313 a tonne.
    * ShFE aluminium  SAFcv1  was up 1% at 19,280 yuan a tonne,
nickel  SNIcv1  rose 0.8% to 140,850 yuan a tonne, while zinc
 SZNcv1  declined 1.7% to 22,045 yuan a tonne and lead  SPBcv1 
shed 1.5% to 15,655 yuan a tonne.
    * For the top stories in metals and other news, click
 TOP/MTL  or  MET/L      
        
($1 = 6.4670 yuan)

 (Reporting by Mai Nguyen in Hanoi, Editing by Sherry
Jacob-Phillips and Uttaresh.V)
 ((mai.nguyen@thomsonreuters.com; +842438259623; Reuters
Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
 
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