METALS-Copper skips higher on Evergrande payment and tight supply

By Reuters / November 11, 2021 / www.kitco.com / Article Link

(Updates prices) By Eric Onstad LONDON, Nov 11 (Reuters) - Copper prices rebounded onThursday after debt-burdened China Evergrande Group again dodgeda default, raising hopes of government support for a propertysector that can drive significant demand for metals.

Several of developer Evergrande's bondholders had receivedinterest payments on three bond tranches worth more than $148million, reports said. Three-month copper on the London Metal Exchange(LME) had gained 1.2% to $9,643 a tonne by 1700 GMT afterdipping 0.2% in the previous session. "It's all about maintaining stability," said Xiao Fu, headof commodity market strategy at Bank of China International,adding that the government will act to calm property marketfears but would not necessarily reverse policy on propertysector restraints. The real estate sector accounts for a large share of copperconsumption and China is the world's biggest user of the metal. "We also think there will be a shift from property toinfrastructure late this year and the first half of next year,which will be a supporting factor," Fu added. Tight supplies of copper also continued to keep prices onthe boil, with LME inventories having tumbled bymore than half since August.

* Shanghai tin prices surged to their highest in more thantwo weeks, supported by supply disruptions caused by Chinaclosing a border crossing with Myanmar to prevent the spread ofthe coronavirus.* The most-traded December tin contract on the ShanghaiFutures Exchange jumped as much as 5.4% to 289,370 yuan($45,273.48) a tonne, its highest since Oct. 25. * Tin inventories in both LME and ShFE warehouses have been hovering near multi-year lows.LME tin gained 1.1% to $37,680 a tonne. * LME aluminum advanced 3.1% to $2,658.50 a tonne,lead climbed 1.1% to $2,365, nickel edged up0.1% to $19,765, but zinc slipped 0.6% to $3,271.50.

* Codelco's Chinese customers are reluctant to sign up forcopper supply in 2022 at the highest premium in seven yearsbecause of strong backwardation in the copper market, threesources with knowledge of the matter said.* For the top stories in metals and other news, click or ($1 = 6.3916 yuan) (Additional reporting by Mai Nguyen in Hanoi;Editing by Emelia Sithole-Matarise, Elaine Hardcastle)

LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES )) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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