METALS-London copper set to rise for third straight day on U.S. stimulus hopes

(Adds quotes, updates prices)

HANOI, Dec 17 (Reuters) – Copper prices, often seen as a gauge of global economic health, rose on Thursday, with the London contract set for a third straight session of gains, as investors eyed more stimulus and support from the United States, the world’s largest economy.

Three-month copper on the London Metal Exchange advanced 0.5% to $7,874 a tonne by 0508 GMT, while the most-traded January contract on the Shanghai Futures Exchange was up 0.7% at 58,280 yuan ($8,916.50) a tonne.

Top U.S. lawmakers sounded more positive than they have in months on a potential COVID-19 aid bill, while the U.S. Federal Reserve vowed to keep funnelling cash into financial markets until the country’s economic recovery is secure.

“This (a bill) raises the hope that the additional government support could bolster domestic demand for commodities, including copper, which has surged more than 80% from its March low, amid strong demand from China,” ANZ bank said in a note.

“However, strong growth in demand from developed markets such as Europe and the United States has been absent,” it added.

FUNDAMENTALS

* COPPER: Pan Pacific Copper sees copper prices to fall to between $6,500 and $7,000 a tonne in 2021 due to an expected surplus and on prospects of limited recovery in demand.

* TIN: ShFE tin hit a 30-month high of 155,290 yuan a tonne and LME tin hovered around its highest since April 2019, as inventories in LME warehouses MSNSTX-TOTAL dropped to their lowest since June 23 of 3,070 tonnes.

* LEAD: LME cash lead flipped to a premium of $4.25 a tonne over the three-month contract CMPB0-3 after staying in discount since mid-March, indicating tightening nearby supplies.

* LME aluminium rose 0.3% to $2,042 a tonne, zinc advanced 0.4% to $2,842.50 a tonne and ShFE aluminium climbed 1.2% to 16,520 yuan a tonne, while ShFE nickel dropped 1.2% to 129,840 yuan a tonne.

Source: Read Full Article