HANOI, May 4 (Reuters) – Aluminum prices in London rose on Tuesday as a leading Chinese manufacturer’s carbon-cut pledge raised fears that supplies of the energy-intensive metal would be limited.
Three-month copper on the London Metal Exchange rose 1.5% to $ 2,432.50 per tonne to 0253 GMT, copper rose 0.9% to $ 9,909.50 per tonne, zinc rose 0.4% to $ 2936, $ 50 per tonne, while nickel fell 0.2% to $ 17,635 per tonne.
“We expect aluminum to remain supportive in the short term amid fears that China’s climate change policies will lead to production cuts,” analysts at ANZ said.
“Coal-fired electricity is used by more than 80% of aluminum smelters in China. Pollution reduction policies are likely to push many of them to connect to the grid, which will increase their costs, ”they added.
* The global copper market is expected to surplus 79,000 tonnes this year and 109,000 tonnes in 2022, the International Copper Research Group said Monday.
* Chile, a leading copper producer, has reported a tenth straight month of red metal production in March, reflecting a modest but persistent decline in production that began shortly after the COVID-19 pandemic hit the country.
* Indonesia’s state-owned mining company Aneka Tambang (Antam) said Monday that its nickel ore production more than quadrupled in the first three months of 2021 compared to the same period a year ago.
* Shanghai Futures Exchange is closed for a public holiday.
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* Asian stock markets were mostly rallying as regional equity investors anticipated signs of recovery from the coronavirus pandemic after the world’s largest economies reopened.
DATA / EVENTS (GMT)
04:30 RBA Australia cash rate, May
08:30 UK Markit / CIPS Mfg PMI Final April
1230 United States International Trade March
1400 factory orders in the USA MM March
Reportage by Mai Nguyen; Edited by Rashmi Aych