(Updates prices, adds analyst comment, changes dateline to
London)
By Polina Devitt
LONDON, May 13 (Reuters) - Copper prices rose for an
eighth session on Wednesday, reaching highest since January 29,
due to the bullish technical signals and outperforming prices in
the U.S., while aluminium hit its highest in almost four weeks.
Benchmark three-month copper on the London Metal
Exchange gained 0.9% to $14,152.50 a metric ton by 1019 GMT,
after posting a record close on Tuesday.
The LME's index of six base metals contracts closed
at a record high on Tuesday with copper steadily pushing closer
to its intraday record high of $14,527.50 hit on January 29 and
strong prices for the entire complex.
Copper is supported by bets on future demand growth, recent
strong factory activity data easing concerns about any immediate
effect on global economies from the Middle East conflict and
worries about availability of sulphuric acid for some copper
producers due to the closure of the Strait of Hormuz.
The Yangshan copper premium , a gauge of
China's appetite for importing copper, rose 3% to $72 a ton,
highest since mid-April, suggesting strong demand in the top
metals consumer despite rising prices.
In the U.S., the most active COMEX July copper futures
gained 1.7% to $6.644 a lb with touching a record
high.
Copper in the U.S. is trading at a premium of about $500 a
ton over LME copper with Washington expected to decide by
end-June whether to impose import tariffs on refined copper.
"The anticipation of policy action is drawing metal into the
United States and tightening availability elsewhere, adding
another layer of support to the global market," Neil Welsh, head
of metals at broker Britannia Global Markets, said in a note.
LME aluminium rose 2.3% to $3,641.50 a ton after hitting
highest since April 17 as the Iran war disrupted supply from
producers in the Middle East.
Providing further support, daily LME data showed that
on-warrant aluminium stocks in the LME-registered warehouses
fell to 301,725 tons after 30,000 fresh cancellations in
Malaysia.
Zinc rose 0.2% to $3,538, lead was last up
0.6% at $2,008.50, tin gained 1.6% to $55,560 and nickel
added 1.3% to $19,190. Both zinc and lead hit highest
since late January.