Copper rises on funds inflow, potential supply shortage
April 25 (Reuters) -Copper prices edged higher on Thursday, as the metals market saw an extended inflow of money through investment funds, while a forecast of potential deficit in the refined copper market this year also lent support.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.2% at $9,795.50 per metric ton, as of 0222 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.7% to 79,210 yuan ($10,932.15) a ton.
"Fund buying was still relentless during the U.S. session ... and after a slightly weaker opening, Asian funds seem to be follow through too on this wave of buying," said a trader.
A slightly weaker dollar index .DXY helped make greenback-priced metals cheaper to holders of other currencies.
Analysts in Goldman Sachs forecast the global refined copper market is likely to see a deficit of 428,000 tons in 2024 and expect copper prices in London to hit $12,000 a ton within the next 12 months.
In China, the Yangshan premium assessed by SMM SMM-CUYP-CN has dropped to zero for the first time on record, indicating weak appetite to import copper into China, following a surge in prices.
LME aluminium CMAL3 dropped 0.9% to $2,579.50 a ton, nickel CMNI3 eased 0.5% to $18,850, zinc CMZN3 was nearly flat at $2,804, lead CMPB3 rose 0.2% to $2,200, and tin CMSN3 fell 0.5% to $31,690.
SHFE aluminium SAFcv1 rose 1.1% to 20,370 yuan a ton, nickel SNIcv1 advanced 0.6% to 142,210 yuan, zinc SZNcv1 edged up 0.2% at 22,500 yuan, lead SPBcv1 was up 0.5% at 17,095 yuan and tin SSNcv1 increased 0.6% to 255,710 yuan.
In company news, London-listed miner Anglo American AAL.L said it had received an all-share buyout proposal from BHP Group BHP.AX.
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($1 = 7.2456 yuan)
Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips
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