BEIJING:Copper prices increased today supported by lower global supplies, As the nickel contract on the London Metal Exchange (LME) declined during its first day of Asian trading since March.
The most-traded May copper contract on the Shanghai Futures Exchange was up 0.2 percent to 69,250 yuan ($10,073.61) per tonne, and three-month copper on the LME gained 0.4 percent to $8,960 per tonne.
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However, Last Friday, copper inventories in SHFE-monitored warehouses decreased by 11.6%, marking the fourth consecutive week of decline.
Since their peak at the end of February, stocks have decreased by 36.2% to 161,152 tonnes so far. Metal prices were supported by falling stock prices, rising demand, and the possibility of a pause in the US Federal Reserve’s interest rate hikes.
Still, investors were weighing the actions of authorities and regulators as global banking woes tainted the market.
While On Monday, the greenback-priced commodity came under some pressure as the dollar held firm. Nickel traded at $23,425 per tonne on the LME, down 0.2 percent, with 59 lots traded.
On March 8, 2022, prices doubled within hours to over $100,000 per tonne, prompting the bourse to suspend the nickel market and cancel all transactions.
According to traders, the reopening of Asian hour could make it simpler for traders based in Asia to seek profits based on the price difference between London and Shanghai, thereby improving some market liquidity.
According to Jason Sappor, senior analyst at Metals and Mining Research at S&P Global Commodity Insights, illiquid trading conditions and volatile prices are likely to remain a feature of LME nickel trading in the near future. Copper prices fall as investors take profits after a five-day rally.
Moreover, Sappor said, in 2021, Class 1 nickel, the primary nickel that can be delivered against LME and SHFE contracts, only accounted for about 30% of global primary nickel production.
Tin increased 3.8% to 202,040 yuan, zinc increased 0.5 percent to 22,540 yuan, and SHFE nickel increased 3.1% to 182,510 yuan per tonne.
Zinc fell 1% to $2,890, lead fell 0.2 percent to $2,122, and LME aluminum fell 1% to $2,335 per tonne. Tin rose 1% to $25,065.