Metals: Copper, zinc hit 5-week highs on China trade data, smelter cut

YoungPoong

07/03/2024 11:12

(Adds analyst comment and LONDON dateline, updates prices)
    By Eric Onstad
       LONDON, March 7 (Reuters) - Copper prices touched their
highest in five weeks on better-than-expected trade data in top
metals consumer China while zinc also surged due to a cut in
output at a major South Korean smelter.
    Three month copper on the London Metal Exchange  CMCU3  was
up 0.7% to $3,638 a metric ton by 1045 GMT, the strongest since
Jan. 31.
    Data showed that China's export and import growth in the
first two months of 2024 beat forecasts.
    "The Chinese trade data was quite good, with exports being
strong. Copper imports were up as well, so it looks like demand
is doing all right actually," said Dan Smith, head of research
at Amalgamated Metal Trading.
    China's unwrought copper imports rose 2.6% year-on-year in
January and February, customs data showed.
    The Yangshan copper premium  SMM-CUYP-CN  rose to $60 a ton
on Wednesday, the highest since Jan. 19, indicating improving
demand for copper imports into China.    
    LME zinc also hit a five-week high, fuelled by a 20%
production cut at Young Poong Corp's  000670.KS  Seokpo smelter
in South Korea, analysts and a trader said.   
    LME Zinc  CMZN3  gained 1.5% to $2,531.50 a ton, the highest
since Jan. 31.
    Another trader said the rally was also due to tight zinc
concentrate supply, but added that Chinese demand had so far
remained flat versus last year.
    "Zinc consumption from downstream galvanizing manufacturers
in northern China has recently been subject to environmental
protection and production restrictions, and demand has been
mediocre," said Huatai Futures in a report.
    LME aluminium  CMAL3  rose 0.9% to $2,254 a ton, nickel
 CMNI3  climbed 1.1% to $17,910, lead  CMPB3  advanced 1.7% to
$2,101 and tin  CMSN3  gained 0.8% to $27,415.
    For the top stories in metals, click  TOP/MTL  
    
    

 (Reporting by Eric Onstad
Additional reporting by Mai Nguyen in Hanoi;Editing by Elaine
Hardcastle)
 ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO;
 Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))
 
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