(Updates throughout, changing date from HANOI)
LONDON, March 24 (Reuters) – Copper prices rose on Wednesday as high activity levels in European factories surpassed fears of a rise in coronavirus infections halting demand and delaying metals economic recovery.
Crude copper on the London Metal Exchange (LME) rose 0.3% to $ 9,004 per tonne at 1240 GMT, after a decline in early trading.
Eurozone economic activity returned to growth this month as factories pushed up production at the fastest pace in more than 23 years, but a third wave of coronavirus infections has raised concerns about the ongoing economy .
Copper, used in the power and construction industries, is also seen as a benchmark for the health of the global economy.
Alastair Munro said at the Marex Spectron bankruptcy that copper benefited from advanced Euro PMI data, as well as a kick in crude oil prices.
POSITION: Long-term speculative positions were declining, according to Marex Spectron’s breakdown, with the last long LME net estimate at 33% open interest compared to a multi-year high of 62% last month.
STOCKS: Copper records in LME-listed warehouses have jumped to 129,950 tons, the highest since December, compared to 74,000 tons on February 3. This has allayed concerns about the availability of supply. IOMLAN MCUSTX
Copper stocks have also been seen on other climbing exchanges.
SPREADS: The high price of the LME silver copper contract over the three – month contract was scrapped, after hitting $ 62 per tonne in February. MCU0-3
DOLLAR: Investors looking for a safe haven pushed the U.S. dollar to a four-month high expressing fears that the expansion of locks in Europe would delay global economic recovery. Rising U.S. taxes and higher Sino-US tensions also contributed to the dollar.
SOLAR: Freeport-McMoRan Inc will sign a $ 2.8 billion contract with China’s Tsinghan Holding Group on March 31 to build a copper smelter in Weda Bay, Indonesia.
OTHER METALS: LME aluminum rose 1.4% at $ 2,251 per tonne, zinc fell 0.2% to $ 2,833, lead rose 1.1% at $ 1,972 and tin fell 2.3% at $ 25,305, nickel added 0.3% at $ 16,200. ($ 1 = 6.5223 yuan) (Reporting by Zandi Shabalala, additional recitation by Mai Nguyen; edited by Barbara Lewis)