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LONDON, October 7 (Reuters) – Copper prices rose Thursday, helped by a rally in global stock markets, falling foreign exchange stocks and the threat of a supply disruption at a mine in Peru.
Reference copper CMCU3 on the London Metal Exchange (LME) was up 1.5% to $ 9,180 a tonne at 11:15 am GMT.
However, prices fell from a record high of $ 10,747.50 in May as global economic growth faltered. Copper is expected to fall further before rising demand revives its rally, independent analyst Robin Bhar said.
“If you are looking to trade copper until the end of the year you are probably on the short side. But beyond that you would probably be long,†he said.
MARKETS: Global equities have stepped back on gas as hopes grew that Washington could resolve its debt ceiling wrangling and lower energy prices dampened fears of “stagflation”. MKTS / GLOB
PERU: An indigenous community in the Peruvian province of Espinar plans to block a key mining road indefinitely, a local leader said.
INVENTORIES: Mandate stocks in LME-registered warehouses fell to 82,850 tonnes from 168,075 tonnes on September 21. Shanghai Futures Exchange (ShFE) warehouse stocks at 43,525 are the lowest since 2009. MCUTX-TOTAL, CU-STX-SGH
OUTLOOK: Copper analysts are revising their price forecasts after turbulence in China’s construction sector and electricity supply.
The Bank of Japan has offered its darkest take on regional economies in over a year.
CHINA: Chinese markets reopen on Friday after closing for a public holiday on October 1.
SURPLUS: The International Copper Study Group (ICSG) said the global copper market will experience a deficit of 42,000 tonnes this year and a surplus of 328,000 tonnes in 2022.
GERMANY: German industrial production suffered its largest drop in August since April last year, according to official data.
TECHNIQUES: The 200-day moving average for copper is around $ 9,150 per tonne. A move below this level would worsen its technical outlook.
OTHER METALS: aluminum LME CMAL3 was up 0.8% to $ 2,918.15 per tonne, zinc CMZN3 nickel rose 0.4% to $ 3,026.50, nickel CMNI3 gained 0.5% to $ 18,160 and tin CMSN3 was up 1% to $ 35,505.
Lead CMPB3 was down 0.1% to $ 2,149.50.
(Reporting by Peter Hobson, additional reporting by Mai Nguyen in Hanoi; Editing by Emelia Sithole-Matarise)
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