SINGAPORE — Shanghai copper prices on Wednesday hit their highest in more than 14 months on worries of supply disruptions from Chile, the world’s leading producer of the red metal, and as a bull run in equities in top consumer China boosted sentiment.
The most-traded August copper contract on the Shanghai Futures Exchange hit its highest since April 22, 2019 at 49,970 yuan ($7,121.68) a tonne, while three-month copper on the London Metal Exchange was trading steady at $6,187 a tonne at 0708 GMT.
Chile’s mining minister said his country was prioritizing workers’ health. Worries of supply disruptions in Chile have supported prices for weeks.
“The Chilean mining minister made it perfectly clear that lives would not be sacrificed nor put at risk for the sake of copper production, which has immediately made coronavirus a bullish factor for prices,” Malcolm Freeman, a director at UK broker Kingdom Futures said in a note.
China shares climbed its seventh straight session on hopes of an economic recovery as well as regulatory and retail support, while new Chinese local government special bond issuance in January-June had surpassed half of 2020 quota.
* CHINA COPPER: Domestic refined copper prices rose to their highest since March 2019 at 49,615 yuan a tonne, but Yangshan copper premium was last at $92.50 a tonne, down from $102.50 a week earlier.
* ALUMINIUM: ShFE aluminum rose for an eight straight session, up 0.3% at 14,150 yuan a tonne, and LME aluminum hit a three-month high of $1,641 a tonne.
* OTHER PRICES: LME nickel fell 0.3% to $13,425 a tonne, zinc climbed 1.3% to $2,097.50 a tonne, while ShFE zinc hit its highest since Feb. 20 at 17,115 yuan a tonne.
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($1 = 7.0166 yuan) (Reporting by Mai Nguyen; Editing by Sherry Jacob-Phillips)