METALS-Shanghai copper expected to post monthly gain on U.S. spending plans, strike in Chile
HANOI, May 31 (Reuters) – Copper prices in Shanghai rose on Monday, on the verge of a second consecutive monthly gain, as traders expect a supply threat in Chile and massive US infrastructure spending plans to fuel the shortages .
Copper is often considered an indicator of the global economy due to its wide industrial use, including in infrastructure projects.
The most traded July copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.6% to 73,790 yuan ($ 11,599.47) per ton at 4:20 am GMT, up 2.2% on a monthly basis.
A strike by a union of remote operations workers at BHP Escondida and Spence’s copper mines in Chile entered its second day on Friday, as the company uses replacement workers to keep production going.
The White House has proposed a $ 6 trillion budget plan to increase spending in several sectors, including infrastructure, which has raised concerns about the world’s shortage of metals.
Nickel ShFE SNIcv1 rose 1.4% to 132,430 yuan per tonne, tin SSNcv1 climbed 1.6% to 208,620 yuan per tonne of aluminum SAFcv1 increased 0.4% to 18,795 yuan per ton while zinc SZNcv1 dipped 0.1% to 22,875 yuan per ton.
Trading, however, was lukewarm as the London Metal Exchange was closed for a public holiday.
* The Democratic Republic of the Congo has authorized exports of copper and cobalt concentrate for mining companies that hold exemptions, customs documents showed, after the country appeared to issue a blanket ban on them.
* Bottlenecks in warehouses registered with the London Metal Exchange in Malaysia owned by metal storage company ISTIM UK add to the difficulties aluminum consumers in the United States and Europe face in obtaining the metal they need.
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* Asian stocks were trying to extend their recent rally to a third week in hopes that US jobs numbers show the expected recovery in hiring in May and keep the global recovery on track. MKTS / GLOB DATA / EVENTS (GMT)
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(1 USD = 6.3615 yuan)
(Reporting by Mai Nguyen, editing by Sherry Jacob-Phillips)
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