MELBOURNE, Nov 20 (Reuters) - Shanghai copper prices hovered near 2-1/2-year highs on Friday, underpinned by strong physical demand in China and hopes of supportive U.S. policies for the metal used in renewable energy under a Joe Biden presidency.
* “Physical demand is pretty good in China, in production and in fabrication,” said NAB analyst Lachlan Shaw.
* A string of economic data has reflected strong consumer demand including China’s industrial output which rose at a faster-than-expected pace in October.
* “There are concerns about supply due to COVID-19 and over labour disputes in Chile, as well as building expectations about stimulus and a green energy push from the U.S. under a Biden presidency,” Shaw added. “If anything this year, the impact of COVID-19 has been to push back new projects because the miners reduced crews. And so the market is looking more bullish.”
* A weaker USD also supported gains, as did some monetary stimulus from China at the start of the week.
* Shanghai Futures Exchange copper rose 0.8% to 53240 yuan ($8,098) a tonne, on track for a weekly 2% gain, the most in three months, having this week hit the highest in 2-1/2 years at 53,800.
* London Metal Exchange copper inched up 0.4% to $7,122 a tonne by 0430 GMT, also on track to close the week up near 2-1/2-year highs of $7,179.
* The new Shanghai international copper contract traded up 0.8% with volumes around half the levels seen this time on its market debut on Thursday.
* STRIKES: One of the unions on strike at Chile’s Candelaria copper mine, owned by Canada’s Lundin Mining Corp, rejected a contract offer from the company on Tuesday, confirming the work stoppage would continue.
* For the top stories in metals and other news, click or
* World financial markets were hit by a wave of uncertainty on Friday after U.S. Treasury Secretary Steven Mnuchin called for an end to coronavirus pandemic relief for struggling businesses, sparking a rare clash between the central bank and Treasury.
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
ARBS ($1 = 6.5742 Chinese yuan renminbi) (Reporting by Melanie Burton; Editing by Ramakrishnan M.)
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.