Copper prices rose on Thursday as available stockpiles in London Metal Exchange (LME) warehouses tumbled to a fifth of their level two months ago and a spike in the cost of metal for immediate delivery pointed to a tightening market.

Benchmark copper on the LME was up 0.4% at $6,510 a tonne in official trading, pushing towards last week’s two-year high of $6,633.

Copper has rebounded from a low of $4,371 in March as the coronavirus spread, and Chinese efforts to stimulate its economy by building metals-intensive infrastructure will support prices, said Capital Economics analyst Kieran Clancy.

“The general trajectory over the next 18 months is an upwards one,” he said.

STOCKS: On-warrant copper inventories in LME-registered warehouses fell to 55,950 tonnes after 10,225 tonnes of cancellations. About 250,000 tonnes were on warrant in mid-May. SPREAD: The premium for LME cash copper over three-month metal jumped to a 16-month high of $24.50 a tonne, signalling tighter nearby supply.

Cash copper was at a $30 discount to the three-month contract in May. CHILE: Miner Antofagasta and workers at its Zaldivar mine decided to extend government-mediated talks for a new union contract and avoid a strike. COLUMN: A perfect storm in scrap is copper’s hidden bull driver, writes Andy Home. MARKETS: European and U.S. stock markets rose despite worries about rising cases of COVID-19 and U.S.-China tensions. TESLA/NICKEL: Elon Musk, boss of electric car maker Tesla, has urged miners to produce more nickel for batteries.

ALUMINIUM: China’s June aluminium imports surged by more than 490% year on year to an 11-year high of 288,783 tonnes as traders took advantage of lower prices abroad. Citi raised its aluminium price forecasts to $1,900 a tonne in 2021 and $2,000 a tonne in 2022.

ECONOMY: Surveys showed growing consumer and business confidence in France and Germany, but South Korea plunged into recession in the second quarter. OTHER PRICES: LME aluminium was up 0.4% at $1,697.50 a tonne, zinc rose 0.1% to $2,214, nickel gained 2.8% to $13,498, lead added 0.4% to $1,813 and tin was up 0.7% at $17,703.