London copper rises as concerns over Omicron virus variant ease

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Copper prices rebounded on Wednesday on easing concerns about the new Omicron coronavirus variant that has rattled market sentiment in recent days.

Three-month copper on the London Metal Exchange rose 1.4% to $9,570 a tonne by 0415 GMT, having lost 0.6% in November.

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The most-traded January copper contract on the Shanghai Futures Exchange eased 0.4% to 69,560 yuan ($10,932.98) a tonne, tracking overnight loss in London.

The European Union drug regulator said on Tuesday existing COVID-19 vaccines would provide protection against Omicron, calming markets shaken by Moderna Chief Executive Officer saying existing shots would be less effective against the new variant.

“The market was too short. That (Omicron) is really nothing,” a Hong Kong-based trader said.

Copper prices have been supported by low exchange warehouses supply. LME inventories fell to 76,450 tonnes, the lowest since March 3, while ShFE stockpiles still hovered near their lowest since June 2009.

FUNDAMENTALS

* A spokesperson for Canadian miner Turquoise Hill, majority owned by Rio Tinto , said trucks were still being used to ship copper concentrate to China from the Oyu Tolgoi mine in Mongolia, meaning supply is unaffected by recent curbs on rail imports at some Chinese border cities.

* LME cash aluminum was traded at a $9.80-a-tonne premium over the three-month contract , indicating tight nearby supplies, as LME aluminum stocks fell to 900,975 tonnes, their lowest since September 2019, with most inventories leaving warehouses in Malaysia.

* LME aluminum rose 0.7% to $2,642 a tonne, nickel advanced 1.2% to $20,130 a tonne and lead increased 0.6% to $2,290 a tonne.

* ShFE aluminum rose 0.5% to 19,080 yuan a tonne, zinc was up 0.5% to 23,020 yuan a tonne while ShFE tin fell 0.6% to 285,540 yuan a tonne.

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($1 = 6.3624 yuan) (Reporting by Mai Nguyen in Hanoi; Additional reporting by Tom Daly; Editing by Rashmi Aich)