Copper prices rose slightly on Monday as tensions eased between Russia and Ukraine and on optimism about the outlook for China's economy and metals demand, though expectations of rising copper supplies put a brake on gains.
Three-month copperon the London Metal Exchange
(LME) traded at $7,005 in official rings, up 0.2 percent. It ended the previous week lower for the second week in a row, down 1.1 percent.
Russia's defence ministry said on Friday it had finished military exercises in southern Russia, which the United States had criticized as a provocative step in the Ukraine crisis.
European shares bounced back from a sharp two-week slide, in a move that helped support risk appetite. [.EU]
"There are indications of some easing in geopolitical tension over the weekend, and that is helping the equity markets. Base metals are benefiting from that," said Nic Brown, head of commodity research at Natixis.
Investors were monitoring the situation in the Middle East, with a focus on turmoil in Iraq and on talks in Cairo between Israel and the Palestinians on ending the month-old Gaza conflict.
Robust Chinese export numbers on Friday pointed towards healthy metals use. But solid trade data has yet to be seen globally, with particular questions over the impact of Russian sanctions on the European economy and demand for metals.
This week, industrial production data from China and the United States should paint a clearer picture about the health of the global economy.
"The data from China has been improving for a while now, and the gradual loosening of monetary conditions has been supportive to growth," Brown said.
Investors are concerned, however, that prices for the metal used in power and construction are likely to come under pressure in the second half due to rising supply.
The copper market is expected to be in a 226,000 tonne surplus by the end of 2014, a Reuters poll in July showed, with the surplus seen rising to 285,000 tonnes in 2015
Reflecting a drop in enthusiasm for copper holdings, hedge funds and money managers cut their bullish bets in copper markets in the week to Aug. 5, the Commodity Futures Trading Commission said on Friday.
In other metals, aluminiumtraded at $2,033 a tonne, up 0.4 percent. The discount to three-month prices narrowed to $4.25 per tonne on Friday, its biggest discount since December 2012, reflecting tightening supplies.
Zinc, untraded in official rings, was bid at $2,311 a tonne, up 0.7 percent, rose 0.9 percent, rebounding after hitting its lowest in more than three weeks in the previous session. Prices have been weighed down by rising inventories, with LME stocks increasing by more than 5 percent this month.
Leadtraded at $2,255 a tonne, up 0.7 percent and nickel traded flat at $18,560 a tonne. Tin , untraded in official rings, was bid at $22,350, down 0.1 percent.
In industry news, Michael Farmer, among the world's most famous metals traders, said he had no intention of abandoning the market that earned him his fortune after he was named baron of the British House of Lords.
Source: Reuters
Three-month copper
(LME) traded at $7,005 in official rings, up 0.2 percent. It ended the previous week lower for the second week in a row, down 1.1 percent.
Russia's defence ministry said on Friday it had finished military exercises in southern Russia, which the United States had criticized as a provocative step in the Ukraine crisis.
European shares bounced back from a sharp two-week slide, in a move that helped support risk appetite. [.EU]
"There are indications of some easing in geopolitical tension over the weekend, and that is helping the equity markets. Base metals are benefiting from that," said Nic Brown, head of commodity research at Natixis.
Investors were monitoring the situation in the Middle East, with a focus on turmoil in Iraq and on talks in Cairo between Israel and the Palestinians on ending the month-old Gaza conflict.
Robust Chinese export numbers on Friday pointed towards healthy metals use. But solid trade data has yet to be seen globally, with particular questions over the impact of Russian sanctions on the European economy and demand for metals.
This week, industrial production data from China and the United States should paint a clearer picture about the health of the global economy.
"The data from China has been improving for a while now, and the gradual loosening of monetary conditions has been supportive to growth," Brown said.
Investors are concerned, however, that prices for the metal used in power and construction are likely to come under pressure in the second half due to rising supply.
The copper market is expected to be in a 226,000 tonne surplus by the end of 2014, a Reuters poll in July showed, with the surplus seen rising to 285,000 tonnes in 2015
Reflecting a drop in enthusiasm for copper holdings, hedge funds and money managers cut their bullish bets in copper markets in the week to Aug. 5, the Commodity Futures Trading Commission said on Friday.
In other metals, aluminium
Zinc
Lead
In industry news, Michael Farmer, among the world's most famous metals traders, said he had no intention of abandoning the market that earned him his fortune after he was named baron of the British House of Lords.
Source: Reuters
