London copper rebounds on China stimulus hopes


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Copper prices in London rose on Tuesday, supported by hopes that Chinese stimulus measures would support economic growth in the world’s biggest consumer of the metal.

Three-month copper on the London Metal Exchange rose 0.3% to $7,610 a tonne by 0249 GMT, reversing losses in the previous two sessions.

The most-traded August copper contract on the Shanghai Futures Exchange fell 0.8% to 58,240 yuan ($8,655.98) a tonne, after declining as much as 2.1% earlier in the session.

China aims to build a total of 461,000 kilometers (286,452 miles) of national highway by 2035, compared with 382,000 kilometers by the end of 2021, as authorities are doubling down on an infrastructure push, which means more metals consumption.

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New bank lending in China leapt in June, rising more than expected, while broad credit growth quickened amid efforts to revive the pandemic-hit economy.

However, markets are still cautious over how much Chinese measures can boost metals demand, as a strong dollar – hovering near its highest level since October 2002 – is making greenback-priced metals more expensive to holders of other currencies.

LME zinc rose 1.2% to $3,708 a tonne, ShFE nickel jumped 3% to 163,550 yuan a tonne, ShFE tin leapt 5.4% to 197,670 yuan a tonne and ShFE lead advanced 1.5% to 15,065 yuan a tonne.

FUNDAMENTALS

* China’s copper cathode output in June was little changed from May, state-backed research house Antaike said on Monday, as some smelters shut down for maintenance while others lifted output.

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* China’s biggest lithium compounds producer Ganfeng Lithium Co Ltd said on Monday it will buy Argentina-focussed Lithea Inc for up to $962 million as it seeks to secure access to more resources for production of key battery metals.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares fell, weighed down by the prospect of further monetary policy tightening by central banks, China’s renewed COVID-19 outbreak and Europe’s energy shortage, which also left the euro a whisker from parity with the safe-haven dollar.

DATA/EVENTS (GMT)

0900 Germany ZEW Economic Sentiment July

0900 Germany ZEW Current Conditions July

1200 India Industrial Output YY May ($1 = 6.7283 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Amy Caren Daniel)

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