METALS-Copper hits 7-1/2 month high on trade hopes, sliding stocks

By Kitco News / February 22, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns:
* GRAPHIC-Copper technicals:
(Adds graphic, updates with closing prices)By Eric OnstadLONDON, Feb 22 (Reuters) - Copper prices climbed to theirhighest since July on Friday as inventories tumbled andinvestors bet on a U.S.-China trade deal.Optimism over a trade deal has been rising as top U.S. andChinese trade negotiators haggle over the details of a set ofagreements aimed at ending their trade war. "Copper is getting a lot of momentum from the trade talks.If we get a deal, there wouldn't be much obstacle for copper toreturn to the low $7,000s," said Gianclaudio Torlizzi, partnerat consultancy T-Commodity in Milan.Benchmark copper on the London Metal Exchange has broken thekey level of $6,400 a tonne, which marks the upper boundary of arange that has held for the past six months, he added."If this confirmed today on the weekly chart with a closeabove $6,400, it would mark the start of new bull cycle forcopper."


LME copper gained 1.6 percent in closing open outcrytrading to $6,478 a tonne, its highest since July 4.The metal, widely used in construction and manufacturing,posted a 4.6 percent gain this week, its biggest weekly jumpsince the week ended Sept. 21 last year.



* COPPER STOCKS: On-warrant LME copper inventories , those not earmarked for delivery, slumped bynearly half to 39,800 tonnes in one day, the lowest since August2005, LME data showed on Friday.
* ALUMINIUM: LME aluminium gained 0.4 percent tofinish at a two-week high of $1,913 a tonne.Recent gains have been driven by speculators covering shortpositions, Alastair Munro at broker Marex Spectron said in anote. The LME net speculative short position accounted for 17.6percent of open interest, according the Marex estimates.
* ZINC: Falling LME zinc inventories, hovering at the lowestlevels in more than a decade, may spur prices higher, metalsstrategist Michael Widmer at Bank of American Merrill Lynch saidin a note."With inventories so low, it is easier for marketparticipants to take a dominant position, which in turn couldlead to prices squeezing violently higher."
* NICKEL: LME nickel climbed 1.1 percent to end at atwo-week high of $12,990 a tonne after on-warrant LMEinventories fell to 128,580 tonnes, the lowestsince February 2013.


* PRICES: Zinc gained 1.5 percent to close at $2,724a tonne, lead added 0.4 percent to $2,075 and tin rose 0.3 percent to $21,495.
* For the top stories in metals and other news, click or ($1 = 6.7221 Chinese yuan)<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS LME copper breaks above key chart levels ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Tom Daly in BeijingEditing by David Evans, David Goodman and Kirsten Donovan)

LME price overview COMEX copper futures Base metals news All metals news All commodities news Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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