(Updates with official prices)<\/p>\n
LONDON, Feb 5 (Reuters) – Copper prices rose on Friday, boosted by a weak dollar and hopes for better metals demand due to improved vaccine rollout and as the U.S. stimulus looked set to be approved.<\/p>\n
Three-month copper on the London Metal Exchange (LME) rose 1.9% to $7,970 a tonne by 1740 GMT. The metal, used in the power and construction industries, is on course for a weekly gain of about 1%.<\/p>\n
\u201cMarket sentiment has remained bullish but cautious this week,\u201d said ING analyst Wenyu Yao. \u201cIn the short term there is not much of a directional signal for the metals markets as we head into the Chinese New Year and businesses wind down.\u201d<\/p>\n
Global shares neared record highs as U.S. President Joe Biden\u2019s drive to enact the $1.9 trillion coronavirus aid bill gained momentum after the U.S. Senate passed the budget plan.<\/p>\n
INVENTORIES: Global stocks of copper are at their lowest since 2008 despite the approaching Chinese New Year, when inventories usually build because of lower demand, broker Marex Spectron said in a note.<\/p>\n
Total inventories of copper in LME-registered warehouses are at 76,550 tonnes, less than half of October’s levels. <\/span>MCUSTX-TOTAL<\/span><\/p>\n SPREADS: The premium for LME cash copper over the three-month contract <\/span>CMCU0-3<\/span> jumped to $14.50 a tonne, signalling tight nearby supply.<\/span><\/p>\n The amount of cancelled inventory — stock earmarked for delivery — was high at 31% and fuelled concerns over tight LME copper.<\/p>\n DOLLAR: The dollar retreated after the U.S. jobs report suggested that some traders may have over-egged a stronger American recovery from the coronavirus pandemic. A weaker dollar makes commodities it is priced in cheaper for holders of currencies.<\/p>\n CHINA STOCKS: Metal held in warehouses monitored by the Shanghai Futures Exchange (ShFE) has increased ahead of the Chinese New Year.<\/p>\n