METALS-Copper heads for biggest weekly gain since February
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Published on April 16,2021 08:00 AM Metal Exchange
Copper was on track for its biggest weekly rise in two months on Friday after solid U.S. and Chinese economic data pushed global stock markets to record highs and several investment banks predicted higher prices for the metal.
METALS-Copper heads for biggest weekly gain since February

LONDON, April 16 (Reuters) - Copper was on track for its biggest weekly rise in two months on Friday after solid U.S. and Chinese economic data pushed global stock markets to record highs and several investment banks predicted higher prices for the metal.

However numbers from China, the biggest consumer of metals, were a mixed bag, with factory activity growing strongly but below forecasts and expected to slow.

Benchmark copper on the London Metal Exchange (LME) was up 0.4% at $9,317.50 a tonne in official trading, up around 4% this week and near February’s peak of $9,617, the highest since 2011.

“The Chinese data are only really good at first glance ... momentum has cooled to some extent,” Commerzbank analyst Daniel Briesemann said.

Optimism on stock markets was supporting metals and strong demand during the second quarter - China’s traditional construction season - could lift copper further in the short term, but prices would fall later in the year, Briesemann said.

CHINA: The economy grew by a record 18.3% year-on-year in the first quarter, but the expansion is expected to moderate later this year. Industrial output slowed in March to 14.1%.

U.S: Brightening economic prospects were underscored on Thursday by data including retail sales, which rose by the most in 10 months in March.

OUTLOOK: Goldman Sachs this week raised its 12-month target for copper to $11,000 a tonne, while Citi recommended clients take on bullish copper exposure over the next few weeks.

MARKETS: Global equities reached record highs and oil prices rose above $67 a barrel.

ALUMINIUM: LME aluminium was down 0.6% at $2,324.50 a tonne after data showed China’s March aluminium output rose to a monthly record.

Aluminium hit a three-year high of $2,359 on Thursday, in part due to expectations that a Chinese anti-pollution drive would curtail aluminium production capacity.

OTHER METALS: LME zinc was up 0.4% at $2,876 a tonne, nickel rose 0.6% to $16,459, lead gained 1.8% to $2,052, and tin was 0.9% higher at $26,600.

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