Copper closed higher in the session this Tuesday (2), on a day when the dollar was weakening abroad. Supply-related risks provide support to prices, according to analysts.
Copper for May closed up 0.54%, at US$4.0705 a pound, on Comex, the metals division of the New York Mercantile Exchange (Nymex). On the London Metal Exchange (LME), three-month copper rose 1.58% at 2:50 pm (Brasília time), on the return of the Easter weekend, to US$ 9,012.00 per ton.
“Sentiment is improving in the copper market amid the prospect of further supply tightening,” economists Brian Martin and Daniel Hynes wrote in an ANZ Research note.
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Analysts commented that this made the price difference between spot and short-term futures contracts reach the highest level since the 1990s. “The spot market was not yet feeling the impact of the tight supply of concentrated copper due to inventories abundant accumulated before the Chinese People’s Congress.
TD Securities also said spreads suggest the physical market is not supporting the rally in oil prices. “After all, reports of potential cuts at Chinese smelters may have triggered the rally in copper markets, but the biggest traders in China are not buying it. The biggest traders in Shanghai continue to accumulate their net short positions in the Shanghai futures exchange’s copper markets at the highest levels since the turn of the year.
Among other metals traded on the LME, at the time above, a ton of aluminum was up 1.71%, at US$2,375.00; lead fell 1.56%, to US$2,021.00; nickel gained 2.19%, at US$ 17,010.00; tin rose 1.09%, to US$27,775.00; and zinc had a slight increase of 1.83%, at US$ 2,481.50.
