(Bloomberg) – The price of copper rose to a two-week high in London as the market reopened after the Easter holidays, advancing alongside mounting euphoria surrounding a post-pandemic US recovery.
Industrial metal rose 2.9% on the London Metal Exchange (LME) after posting gains in New York on US jobs data that fueled optimism of a strong economic recovery. The LME is “recovering a bit” from the price hikes seen on the Comex on Friday and Monday, said Edward Meir, an analyst at ED&F Man Capital Markets.
Copper is expected to join the post-pandemic growth of the US economy, which may recover faster than other countries due to the rapid administration of vaccines and strong economic stimulus. The metal will be key to President Joe Biden’s $ 2.25 trillion infrastructure plan. In addition to the bullish jobs report released Friday, a manufacturing index released last week reached its highest level since 1983.
“The perception of the US industry is almost euphoric,” Commerzbank AG analyst Daniel Briesemann said in a note.
On the supply side, Chile, which provides more than a quarter of the world’s mined copper, said last week that it would close its borders during April to combat a new wave of COVID-19 cases. That will not affect shipping or the normal operation of mines, the Ministry of Energy and Mining said late Monday.
“Clearly, the movement of people and goods overland, both to and from mines and ports, will be somewhat affected,” said Colin Hamilton, an analyst at BMO Capital Markets, in a note. “The restrictions are likely to last at least three to four weeks.”
Copper closed at $ 9,047 per metric ton at 5:53 pm on the LME, its highest level since March 22. Nickel and copper led other base metals, with nickel rising 3.2% to $ 16,740 per tonne, its biggest gain since January 14.
Original Note: Copper Rallies in London on Rising Prospects of US Recovery
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