(Updates with prices) By Zandi Shabalala LONDON, July 21 (Reuters) - Copper prices climbed oninvestor hopes for a recovery in metals demand and the globaleconomy after European Union leaders agreed a massive stimulusplan and positive news emerged about a coronavirus vaccinetrial. Three-month copper on the London Metal Exchange rose0.8% to $6,541 a tonne by 1617 GMT on Tuesday, close to the25-month high of $6,633 on July 13.
BMO Capital Markets analyst Tim Wood-Dow cited vaccinetrials and the EU stimulus package for boosting sentiment andprices but said gains could be capped by the current seasonalslowdown in China.
"(Data) shows that western financial markets are alreadyquite long on copper and so from a financial positioningstandpoint, the impetus on prices may have run its course fornow," he said.
STIMULUS & VACCINE: European Union leaders agreed on amassive stimulus plan for their economies, while early data fromtrials of three potential coronavirus vaccines showed positiveresults. U.S RELIEF FUND: Advisers to U.S. President Donald Trump andcongressional Democrats were set to discuss the next steps inresponding to the coronavirus crisis on Tuesday, withcongressional Republicans saying they were working on a $1trillion relief bill. POSITIONING: Speculators upped their net long position inCOMEX copper futures by 9,792 contracts to 41,309 in the week toJuly 14. After touching a November 2017 high of 18.1% of openinterest on Monday last week, the LME Copper net speculativelong eased slightly to 15.7% on Friday, broker Marex Spectronestimates.
CHINA COPPER: Refined domestic copper prices fell 2.1% to 51,375 yuan a tonne from a 25-month high hit in theprevious session, the latest SMM data showed. OTHER PRICES: LME aluminium rose 1.9% to $1,686 atonne, zinc was up 1.9% at $2,242.50, lead rose0.2% to $1,844, tin added 1.1% to $17,555 and nickel gained 1.1% to $13,367. (Reporting by Zandi Shabalala; additional reporting by MaiNguyen;editing by Emelia Sithole-Matarise, David Goodman and BarbaraLewis)
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