Copper prices rose on Thursday, fuelled by worries over a potential supply shortage of refined metals, as the industry started to feel the impact of transport restrictions in China amid efforts to contain a virus outbreak.
Three-month copper on the London Metal Exchange rose as much as 1.3 percent to $5,797 a ton, its highest since Jan. 27, while aluminum advanced 0.6 percent to $1,727 a ton and zinc increased 1.1 percent to $2,238 a ton.
“Not only is the demand side impacted, but also the supply side,” said a metals analyst based in China, who cannot be identified because of company policy.
“If the outbreak situation does not improve, some smelters may consider cutting production,” the analyst said, adding that aluminum and zinc were also affected by the same concerns.
Some container ports in China are congested with less working labor amid the outbreak.
The most-traded copper contract on the Shanghai Futures Exchange rose 1.3 percent to 46,010 yuan ($6,601.24) a ton, while aluminum climbed 0.3 percent to 13,655 yuan a ton, zinc edged up 0.3 percent to 17,350 yuan a ton. – Reuters
