BHP Group's Bid for Anglo American Boosts Copper Prices

Copper prices started the week on a positive note, driven by a combination of factors including a potential deal between BHP Group and Anglo American that could create the world's largest copper miner. The three-month copper on the London Metal Exchange saw a 0.2% increase to $9,985 per metric ton, following a recent two-year high. In Shanghai, the most-traded June copper contract rose by 0.5% to 80,760 yuan per ton.

The market has been impacted by shortages of copper ore and concentrate, exacerbated by the closure of the Cobre Panama mine in December. This scarcity led to processing fees for copper turning negative for the first time last week. The prospect of BHP Group's bid for Anglo American has heightened concerns about copper supply, pushing London copper prices to test the $10,000 per metric ton mark.

While BHP Group is contemplating an improved offer in the coming weeks, the exact details of the proposal are yet to be finalized. Investors are closely watching the Federal Reserve's upcoming policy review on May 1, with expectations of a potential delay in rate cuts due to recent US inflation data.

Other metal prices also saw movements, with LME aluminium remaining stable at $2,568 a ton, nickel rising by 0.9% to $19,270, zinc increasing by 0.5% to $2,858.50, tin edging up by 0.2% to $32,485, and lead decreasing by 0.2% to $2,203. In Shanghai, SHFE aluminium climbed by 0.9% to 20,685 yuan a ton, nickel sliding by 0.3% to 142,950 yuan, zinc rising by 0.5% to 22,915 yuan, lead nudging up by 0.1% to 17,220 yuan, and tin declining by 0.6% to 260,080 yuan.