Copper hits near 2-month high on sliding stocks, energy crisis

LONDON, Aug 26 (Reuters): Copper prices touched their highest in nearly two months on Friday and aluminium also climbed on worries over an energy crisis hitting output while supply is tight and inventories low.

Three-month copper on the London Metal Exchange CMCU3 was up 2.1 per cent at $8,297 a tonne by 1025 GMT, its highest since June 30.

Copper prices have rebounded 17 per cent since touching 20-month lows on July 15, but are still down 25 per cent from a record peak scaled in March.

Soaring power prices have hit energy-intensive aluminium and zinc the most, causing smelter cutbacks, but have boosted costs for metals producers across the board.

The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading up 1.7 per cent at 63,690 yuan ($9,278.85) after hitting its highest since June 30.

"As long as supply is being destroyed by the energy crisis at a faster rate than demand is being destroyed by hawkish policies of central banks, that could really tighten the fundamentals for base metals," said Nitesh Shah, commodity strategist at WisdomTree.

LME benchmark aluminium CMAL3 gained 2.9 per cent to a two-week high of $2,505 a tonne.