Copper holds near 29-month high as vaccine good news keeps coming

Copper on Monday held near Friday's 29-month high as another coronavirus vaccine breakthrough added to hopes for a strong global economic recovery, boosting stock markets and oil prices.

AstraZeneca said its vaccine could be around 90% effective, the third major pharmaceuticals company to announce successful trials this month.

A U.S. health official, meanwhile, said COVID-19 shots could reach the first Americans by mid-December.

Benchmark copper on the London Metal Exchange (LME) fell 0.6% to $7,233.50 a tonne in official trading but was close to Friday's peak of $7,294.50 and well above last week's average.

Copper has rallied 65% from a low in March as China's metals-intensive economy rebounded and speculative investors piled into the market.

While the dollar weakened against some major currencies, it strengthened against the yuan, making metals pricier for Chinese buyers.

This may have dampened demand for copper in China, stalling its momentum, said Saxo Bank analyst Ole Hansen.

But he said prices could still move higher.

"The global economy is coming back with a vaccine," he said.

ECONOMY: Euro zone business activity contracted sharply this month but news of possible vaccines boosted hopes for 2021, surveys showed on Monday.

POSITIONING: Speculators expect higher LME copper prices, raising their net long position to 14.6% of active contracts by Thursday, brokers Marex Spectron said.

STRIKE: One of the unions on strike at Chile's Candelaria copper mine accepted a 30-month collective agreement from Lundin Mining Corp on Friday.

CHILE: Chile's copper production will likely edge up 0.6% to 5.82 million tonnes in 2020 and climb to 5.99 million tonnes in 2021, state copper commission Cochilco said.

ALUMINIUM: China's aluminium imports fell 27.9% in October from September, as the spread between domestic and international prices continued to narrow.

COLUMN: Zinc prices are soaring on a supply squeeze even as stealth stocks build, writes Andy Home.

METALS PRICES: LME aluminium was down 0.4% at $1,985.50 a tonne, zinc fell 0.9% to $2,768, nickel slipped 0.5% to $16,065, lead lost 0.4% to $2,006.50 and tin was flat at $18,790.

On Friday, aluminium reached a two-year high, zinc an 18 month peak and lead its highest since January.