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Copper breaks above $10,000 for the first time in two years

LONDON: Copper prices in London hit a two-year high and surpassed a strong resistance level of $10,000 a metric ton on Friday after Shanghai prices hit a record high on fund buying.
Three-month copper on the London Metal Exchange was up 1.4% at $10,006 a ton by 0958 GMT after peaking at $10,033.50 for its highest since April 2022. The most traded June copper contract on the Shanghai Futures Exchange hit a record high of 81,180 yuan and closed 2.2% up at 81,100 yuan ($11,192.07).
Copper, used in power and construction, attracted additional attention from investors after BHP Group’s takeover proposal to Anglo American, which the London-listed miner rejected on Friday, saying the $39 billion bid undervalued its future prospects.
“Speculation over supply shortfalls in copper are pushing prices to new highs. At the same time, investors are turning optimistic about demand from the green energy sector. BHP’s bid for Anglo American highlights the looming supply squeeze,” said ING commodities analyst Ewa Manthey.
Copper rises on funds inflow, potential supply shortage
In the short-term, however, there are still concerns about demand from top consumer China.
“Premiums for imported cargoes are at record lows, inventories are high and the expected pick-up in demand has not materialised yet,” Manthey added.
In another sign of relatively weak near-term demand, the discount for LME cash copper over the benchmark three-month contract closed on Thursday at $122.85 a ton, up from $78.76 a week ago. It hit a record $134.50 on April 9.
On a weekly basis, copper is up 1.3% and on track for its fourth consecutive week of growth.
LME aluminium rose 1.4% to $2,599.50 a ton, but was on track for a 2.6% weekly decline for its worst week since January. It previously registered six straight weekly gains.
Zinc gained 1.5% to $2,890 after hitting a one-year high, lead advanced 1.2% to $2,233.50 after touching its highest in five months and nickel was up 1.1% at $19,375.
Tin lost 6% week on week and was set for its biggest weekly decline since September. It was last up 1.7% at $33,230 a ton.

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