Copper prices have hit 10-week highs overnight as easing COVID-19 lockdowns around the world raised expectations of stronger demand and economic activity.
Benchmark copper on the London Metal Exchange rose to $US5,464 a tonne, the highest since March 13, before falling 1 per cent to $US5,387 a tonne at 1606 GMT.
“The threat of a second wave seems to be receding and more fiscal support coming through is positive for metals and related equities,” SP Angel analyst John Meyer said.
“A key indicator here is oil, which has rallied as China and other parts of the world return to work.”
Oil rose on Thursday to its highest since March, supported by lower US crude inventories, OPEC-led supply cuts and recovering demand.
Major resistance for copper prices comes in at $US5,490 where the 100-day moving average currently sits.
“(Copper) is now in clear breakout mode and could move higher still as funds come in,” said Edward Meir, analyst at ED&F Man Capital Markets.
“But we would be more comfortable seeing another close above $US5,370 so that we get two consecutive closes above that resistance mark.”
The premium for the cash over the three-month tin contract spiked to $US245 a tonne on Wednesday due to worries about nearby supplies on the LME market. It was last at $US192 a tonne.
Large holdings of cash contracts and tin stocks in LME registered warehouses at their lowest since May last year have fuelled those worries.
Three-month tin slipped 0.2 per cent to $US15,430 a tonne, having earlier reached $US15,735, the highest since March 16.
Aluminium rose 0.7 per cent to $US1,523, zinc fell 3.2 per cent to $US1,970, lead ceded 2.9 per cent to $US1,648 and nickel climbed 0.8 per cent to $US12,775 a tonne.