Metal markets continue to trade in firm and slightly positive territory amid a continuing stable Australian dollar. The stability of the market is giving traders and manufacturers confidence to price material when it’s available.
With the London Metal Exchange taking a holiday today and no real data to speak of due, we may well be headed for another steady week in the world of metal markets.
**** METALS-Shanghai copper rises to 3-month peak in holiday-thinned trade ****
* South Korean copper premiums rise on partial plant shutdown
* China shares rise after president endorses green cars (Adds analyst comment; updates prices)
By Melanie Burton
Shanghai copper climbed on Monday to its highest since late February as seasonally strong demand put pressure on tight supplies amid modest trading volumes given holidays in Britain and the United States.
An improvement in risk appetite also buoyed metals, after exit polls in Ukraine gave Petro Poroshenko, a confectionery magnate with long experience in government, 55 percent of the vote in the presidential election, fuelling hopes that geopolitical tensions would ease. ”It seems like investors are much happier to take risk back on their portfolios given developments in Ukraine,” said Timothy Radford, analyst at Sydney-based adviser Rivkin. ”Ever since we had the big sell-off back in early March and bottomed out, this gradual buying support has pushed prices higher,” he said, adding that markets will now be watching to see if this weekend’s China factory gauge will further boost optimism over growth after last week’s upbeat numbers. But in China, premiums have come down due to soaring costs to hold copper.