METALS-Copper climbs on US shutdown deal, supply tightness
Copper prices rose on November 11, driven by a potential resolution to the U.S. government shutdown and expectations of tighter supply next year. The Shanghai Futures Exchange reported a 0.42% increase in copper prices, while the U.S. Senate passed a bill to end the shutdown, pending House approval. Reduced output from Chile's Codelco and other mines contributed to supply concerns. Other base metals also saw slight gains, with aluminium and zinc rising, while lead and nickel experienced minor declines.
SHANGHAI, Nov 11 (Reuters) - Copper prices climbed on Tuesday, as a potential resolution to the U.S. federal government shutdown lifted market sentiment, while fresh production data reinforced expectations of tighter supply next year.
The most-traded copper contract (SCFcv1) on the Shanghai Futures Exchange was up 0.42% at 86,690 yuan ($12,170.43) per metric ton, as of 0240 GMT.
The benchmark three-month copper (CMCU3) was up 0.24% at $10,822 a ton.
The U.S. Senate passed a bill to end the longest government shutdown on Monday, pending approval from the Republican-controlled House of Representatives. Speaker Mike Johnson has said he would like to pass it as soon as Wednesday and send it to U.S. President Donald Trump for signing into law.
The agreement would fund federal agencies through January 30, offering temporary relief to unpaid federal workers, disrupted food assistance programs and strained travel service.
The resolution also helped lift market sentiment.
Investors are now awaiting a backlog of key economic data, delayed by the government shutdown, to offer fresh insight into the U.S. economy once federal operations resume.
Copper prices also gained support from reduced output at Chile’s state-owned miner Codelco, which produced 7% less metal in September, according to data from copper commission Cochilco.
Production at a mine jointly operated by Glencore (GLEN.L) and Anglo American (AAL.L) fell 26%, while output at BHP’s (BHP.AX) Escondida mine rose 17%.
Copper prices have been supported by prospect of short supply next year, with several mine disruptions expected to impact copper concentrate output.
Among other SHFE base metals, aluminium (SAFcv1) was up 0.30%, zinc (SZNcv1) gained 0.27%, tin (SSNcv1) added 0.52%, lead (SPBcv1) dipped 0.26% and nickel (SNIcv1) edged 0.20% lower.
Elsewhere among LME metals, aluminium (CMAL3) gained 0.35%, tin (CMSN3) rose 0.42%, zinc (CMZN3) dropped 0.18%, lead (CMPB3) declined 0.32%, and nickel (CMNI3) nudged 0.22% lower. Tuesday, November 11 DATA/EVENTS (GMT) 0700 UK Claimant Court Unem Chng October 0700 UK ILO Unemployment Rate September 0700 UK HMRC Payrolls Change October 1000 Germany ZEW Economic Sentiment November 1000 Germany ZEW Current Conditions November
($1 = 7.1230 Chinese yuan)
