(Updates prices, adds comment and details)
Oct 16 (Reuters) – Copper prices rose on Friday as hopes of strong demand in top metals consumer China and risks of supply disruptions outweighed concerns that a resurgence in COVID-19 cases in Europe may weaken the global economic recovery momentum.
Three-month copper on the London Metal Exchange was up 0.2% at $6,764 a tonne by 0326, extending gains to a third session.
The most-traded November copper contract on the Shanghai Futures Exchange climbed 0.6% to 51,550 yuan ($7,667.71) a tonne.
Most other base metals also rose.
“Industrial metals look set to shine despite the economic gloom,” commodity strategists at ANZ said in a note. “Ample Chinese fiscal measures provided a much-needed boost to the sector (while) supply-side issues are tightening the market balance.”
They added that copper has benefitted mostly from pandemic-related mine disruptions in Chile and Peru.
“While the resurgence of cases is still a risk for supply, resurfacing labour strike risks in Chile will be another headwind for supply recovery,” ANZ strategists said.
* Chilean copper miner Codelco said it was producing at full capacity and aims to meet 2020 output targets.
* Aurubis, Europe’s biggest copper smelter, will offer unchanged 2021 copper premiums to its customers of $96 per tonne above LME prices.