Copper rises as US economic data lifts recovery optimism

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Prices of copper, often used as a gauge of global economic health, climbed on Thursday as solid US data boosted optimism over a strong recovery in the world’s biggest economy.

US private payrolls increased more than expected in June as companies rushed to boost production and services amid a rapidly reopening economy.

Three-month copper on the London Metal Exchange was up 0.4% at $9,410 a tonne, as of 0119 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange advanced 0.7% to 68,710 yuan ($10,641.82) a tonne.

Though gains were capped on concerns of a sooner-than-expected US policy tightening to tame inflation, which would boost the dollar and make greenback-priced metals more expensive to holders of other currencies.

Federal Reserve Bank of Dallas President Robert Kaplan said he would like the US central bank to start reducing its support for the economy before the end of the year to make an abrupt policy tightening less likely later on.

FUNDAMENTALS
LME nickel rose 0.2% to $18,250 a tonne, zinc dipped 0.2% to $2,968 a tonne, ShFE nickel dropped 0.6% to 135,660 yuan a tonne, and ShFE zinc rose 0.9% to 22,155 yuan a tonne.

The spread of cash over three-month lead on the LME flipped to a discount of $9 a tonne, from a premium of $29.50 a tonne in the previous session – the highest since March 9, indicating nearby supply tightness has eased.

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