HANOI, Jan 18 (Reuters) – Copper prices advanced on Monday as traders bet on prospects of improved demand, after top metal consumer China posted stronger-than-expected growth and solid industrial output data.
China’s economy grew 6.5% in the previous quarter, faster than the 6.1% forecast by economists in a Reuters poll, ending a rough coronavirus-striken 2020 in remarkably good shape and remained solidly poised to expand further this year.
The country’s industrial production also rose at a faster-than-expected rate, up 7.3% in December 2020 from a year earlier and hitting the highest since March 2019.
“Copper turned higher after Chinese data on Monday confirmed the strong economic recovery at the world’s top metals consumer,” said commodities broker Anna Stablum at Marex Spectron in a note.
Three-month copper on the London Metal Exchange rose 0.8% to $8,0009 a tonne by 0739 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange closed up 0.1% to 59,280 yuan ($9,138.42) a tonne.
LME nickel increased 1% to $18,190 a tonne while zinc fell 0.4% to $2,689 a tonne. ShFE aluminium ended up 0.5% at 14,940 yuan a tonne and nickel increased 0.5% to 134,930 yuan a tonne.
* China produced 37.08 million tonnes of aluminium in 2020, setting an annual record as smelters cashed in on soaring prices, with December output also hitting a monthly all-time high even as the rally cooled.
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Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
($1 = 6.4869 yuan)
(Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips and Rashmi Aich)