Base metals surge, LME Copper at 9-year high on supply concerns

The rally in metal prices continued on Monday, with copper surging above the $9,000 mark per tonne on the London Metal Exchange (LME) on supply concerns along with demand hopes from China after the Chinese New Year.

The three-month copper contract on LME soared 3.1 per cent to $9,187 a tonne, the highest level since September 2011.

Weakness in the dollar also supported the metal, analysts said.

Metal prices also have been on the rise on hopes of growth in economic activities and infrastructure building globally, mostly in China post the roll out of the vaccines to combat Covid-19.

In line with the international prices, copper futures in the domestic market also rose on Monday.

Currently, the February delivery contract of copper on the Multi Commodity Exchange (MCX) was at Rs 713.50 per kg, higher by Rs 21.25 or 3.07 per cent from its previous close.

Nickel topped $20,000 a tonne on the LME and the February contract of nickel was at Rs 1,438.70, higher by Rs 22.70 or 1.60 per cent from its previous close.

Similarly, aluminium and zinc future were also trading in the green.

The February Aluminium contract was at Rs 171.70 per kg, higher by 0.97 per cent and Zinc was at Rs 239.95, higher by 2.39 per cent from its previous close.

Along with base metal, futures of precious metals have also been on an uptrend off late, largely on anticipation of the $1.9 trillion stimulus in the US and a weak dollar index.

The March contract of silver on the MCX was at Rs 69,342 per kg, higher by Rs 330 or 0.48 per cent from its previous close.

The April gold contract on the MCX was trading at Rs 46,287 per 10 gram, higher by Rs 90 or 0.19 per cent. — IANS