2023-08-30 06:45:15
The price of copper in London fell on Wednesday amid caution ahead of key US and Chinese data releases, but dollar weakness and China’s housing easing measures limited declines.
Three-month copper on the London Metal Exchange fell 0.2% to $8,432 per metric ton at 0607 GMT, while the most traded October copper contract on the Shanghai Futures Exchange rose 0, 4% to 69,390 yuan ($9,518.00) per ton.
The dollar index stalled following a sharp decline in the previous session as weak US jobs data reduced bets on further rate hikes, and amid caution ahead of a series of key US economic data due out later in the week.
A weaker dollar makes commodities paid for by the greenback more affordable to holders of other currencies.
Metals industry players also looked to manufacturing data from China, due Thursday and Friday, to gauge the outlook for metals demand and support for Chinese stimulus measures.
The easing of mortgage rules in the Chinese city of Guangzhou cushioned the drop in metal prices.
“It’s a good opportunity to buy the dip. Everything should go higher now that the interest rate outlook has changed,” said a metals trader.
Yangshan’s copper premium hit its highest level since December 2022 at $52 a tonne on Tuesday as the price difference between London and Shanghai created an opportunity to ship metals to China for profit.
LME aluminum rose 0.3% to $2,174 a tonne, zinc edged up 0.1% to $2,442.50, tin was almost unchanged at $25,385, while nickel was down 0.3% at $20,630 and lead was down 0.6% at $2,178.
SHFE’s aluminum rose 0.8% to 18,795 yuan a ton, zinc climbed 1% to 20,955 yuan, tin jumped 0.9% to 213,710 yuan, while nickel fell 0.4% to 165,430 yuan and the lead rose 0.4% to 16,280 yuan.
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($1 = 7.2904 yuan) (Reporting by Mai Nguyen in Hanoi; Writing by Varun HK and Rashmi Aich)
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