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Company News

METALS-Copper extends gains on China demand hopes, supply risks

(Updates prices)

Oct 16 (Reuters) - Copper prices rose on Friday as hopes of strong demand in top metals consumer China and risks of supply disruptions outweighed concerns that a resurgence in COVID-19 cases in Europe could weaken the global economic recovery momentum.

Three-month copper on the London Metal Exchange was up 0.3% at $6,769 a tonne by 0703 GMT, extending gains to a third session.

The most-traded November copper contract on the Shanghai Futures Exchange closed 0.5% higher at 51,470 yuan ($7,660.82) a tonne.

Other LME base metals also rose.

“Industrial metals look set to shine despite the economic gloom,” commodity strategists at ANZ said in a note. “Ample Chinese fiscal measures provided a much-needed boost to the sector (while) supply-side issues are tightening the market balance.”

They added that copper has benefited mostly from pandemic-related mine disruptions in Chile and Peru.

“While the resurgence of cases is still a risk for supply, resurfacing labour strike risks in Chile will be another headwind for supply recovery,” ANZ strategists said.

FUNDAMENTALS

* Chilean copper miner Codelco said it was producing at full capacity and aims to meet 2020 output targets.

* Aurubis, Europe’s biggest copper smelter, will offer unchanged 2021 copper premiums to its customers of $96 per tonne above LME prices.

* Nickel Mines Ltd will buy 70% of Indonesia’s PT Angel Nickel Industry for $490 million in a deal that will double its nickel production within two years.

* In London, nickel rose 0.9% to $15,555 a tonne, aluminium was up 0.3% at $1,858 a tonne, and zinc advanced 0.3% to $2,433.50 a tonne.

* In Shanghai, nickel jumped 1.3%, aluminium gained 0.3%, but zinc slipped 0.5%. Lead and tin both lost 0.1%.

* For the top stories in metals and other news, click or

($1 = 6.7186 yuan)

Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Aditya Soni

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