SINGAPORE — Shanghai copper hit its highest in five-and-a-half months on Wednesday, as better-than-expected manufacturing data from China boosted hopes of an improvement in demand for the metal.
China’s factory activity in June grew at its fastest pace since December and beat expectations, after the government lifted coronavirus lockdowns and ramped up support steps, a private business survey showed.
The most-traded copper contract on the Shanghai Futures Exchange hit its highest since Jan. 17 at 49,290 yuan ($6,979.12) a tonne, and the three-month copper on the London Metal Exchange rose to as high as $6,092.50 a tonne, a level unseen since Jan. 23.
FUNDAMENTALS
* COPPER STOCKS: LME copper stocks hit their three-month low at 216,600 tonnes, while ShFE copper inventories were at their lowest since January 2019.
STORY CONTINUES BELOW
* OTHER PRICES: LME aluminum edged up 0.1% to $1,621 a tonne at 0240 GMT, zinc rose 0.1% to $2,050 a tonne. In Shanghai, aluminum hit its highest since Jan. 17 at 13,975 yuan a tonne and lead jumped 1.2% to 14,885 yuan a tonne.
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MARKETS NEWS
* Asian stocks were set for a bumpy start to the second half of the year as optimism about a global economic recovery from the pandemic jousted with signs in the United States the health crisis may not yet be past its peak.
DATA/EVENTS (GMT, June)
0500 India IHS Markit Mfg PMI
0600 UK Nationwide house price MM, YY
0755 Germany Markit/BME Mfg PMI
0755 Germany Unemployment Chg, Rate SA
0800 EU Markit Mfg Final PMI
0830 UK Markit/CIPS Mfg PMI Final
1345 US Markit Mfg PMI Final
1400 US ISM Manufacturing PMI
1800 US Federal Open Market Committee will release
the minutes of its June 9-10 policy meeting ($1 = 7.0625 yuan) (Reporting by Mai Nguyen; editing by Uttaresh.V)