Copper rises and heads to its biggest weekly gain since 2016 amid energy crisis

The copper prices They were up strongly on Friday and headed for their biggest weekly gain since 2016, with a rise in energy values ​​that threatened to curb supply of the metal, just as stocks from traders like the London Metal Exchange (LME) and the Shanghai Futures Exchange (ShFE) are at a low.

As of 11:32 GMT, three-month copper on the London Metal Exchange (LME) was up 2.1% at $ 10,191.50 a tonne. The contract accumulates a 9% increase this week, approaching the historical maximum of US $ 10,747.50 reached in May.

China’s power shortages and rapidly rising costs have already forced zinc and aluminum smelters to cut production, pushing prices for both metals to their highest level in more than a decade.

High energy costs are also inflationary and that is driving investor demand for copper and other physical raw materials as hedges, said Ole Hansen, an analyst at Saxo Bank.

The energy crisis in China, the largest producer and consumer of metals, worsens as cold weather hits much of the country.

High energy prices and possible shortages will affect supply more than demand for metals in the coming months, according to analysts at ANZ.

Copper stocks under warranty in LME-registered warehouses have fallen to 14,150 tonnes, the lowest level in at least 20 years. Stocks on the Shanghai Futures Exchange (ShFE) total 41,668 tonnes, the lowest since 2009.

With information from Reuters