Off The Wire
LME copper set for best quarter in nearly a decade
SINGAPORE, June 30 (Reuters) - London copper prices on Tuesday were on track for their best quarter in nearly a decade, on demand recovery in top consumer China, massive global stimulus and tight supplies.
Three-month copper on the London Metal Exchange (LME) rose 0.7% to $6,006 a tonne by 0708 GMT, up 21% on a quarterly basis, its best since the quarter ended September 2010.
The most-traded August copper contract on the Shanghai Futures Exchange (ShFE) ended up 0.9% to 48,790 yuan ($6,902.16) a tonne and was up 24.7% so far this quarter, its best since the last quarter of 2009.
Copper prices have been supported by hopes of stimulus, low inventories and a weaker U.S. dollar , making green-back denominated metals cheaper for buyers using other currencies.
"As long as you see inventories stay low or dwindling, prices will go up," said a metals trader based in Singapore, adding that Commodity Trading Advisor funds were buying automatically at the $6,006 price level.
Factory activity in China quickened faster in June, beating expectations, while the total new orders index also brightened, suggesting that domestic demand is picking up.
However, export orders continued to contract in June and factories cut jobs for the second time since they reopened, indicating that the COVID-19 crisis will drag on growth for some time.
* OTHER METALS: LME aluminium rose 0.1% to $1,611 a tonne and nickel advanced 0.2% to $12,825 a tonne. In Shanghai, aluminium closed at its highest since Jan. 21 at 13,830 yuan a tonne and lead ended at a five-month high.
* TECHNICALS: Three-month LME copper may test a resistance level of $6,075 a tonne this week, a break above could open the way towards $6,343, said Reuters technical analyst Wang Tao.
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