Recasts, adds comments, updates prices
BEIJING, April 6 (Reuters) – Copper prices climbed on Thursday with support from tightening inventoryeven as gains remained limited on global recession fears.
Three-month copper on the London Metal Exchange CMCU3 was up 0.5% to $8,828 a tonne by 0420 GMT, extending gains from the previous session as on warrant copper stocks on the exchange fell to the lowest since 2021.
“Despite support from low inventories, copper prices are more likely to fall given the looming recession concerns,” said Zhang Weixin, an analyst at China Futures.
A recent increase in China’s copper imports also weighed down prices, Zhang added.
Meanwhile, a court has ruled that Ecuador failed to give local communities in a highly biodiverse province their right to an environmental consultation on a joint copper mining venture by state-run ENAMI and a subsidiary of Chile’s Codelco, lawyers for the communities said on Wednesday, and the project must be suspended.
Most other metals in London rebounded. LME zinc CMZN3 recovered 0.6% to $2,805 from a five-month low, aluminium CMAL3 advanced 0.9% at $2,355, tin CMSN3 added 0.3% to $24,320, lead CMPB3 was up 0.3% to $2,116, while nickel CMNI3 eased 0.6% to $22,570.
The dollar gained slightly on Thursday, as traders weighed how pivotal U.S. jobs data coming out during a holiday weekend will impact Federal Reserve policy.
A stronger dollar often makes it less attractive for non-dollar holders to buy the greenback-priced commodity.
The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 slipped 0.7% to 68,680 yuan a tonne.
SHFE aluminium SAFcv1 eased 0.6% to 18,600 yuan, zinc SZNcv1 fell 2.2% to 22,040 yuan, tin SSNcv1 lost 4.4% to 196,020 yuan, and nickel SNIcv1 shed 3% to 173,050 yuan, while lead SPBcv1 added 0.1% to 15,230 yuan.
SHFE will lower margin requirements and trading limits for base metals after the closing of trading on Thursday.
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(Reporting by Siyi Liu and Dominique Patton; Editing by Varun H K and Sohini Goswami)
((Siyi.Liu@thomsonreuters.com;))
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