Base metals rise as dollar softens
Nov 25 (Reuters) -Base metals prices rose on Monday as the U.S. dollar eased, making greenback-priced metals cheaper to holders of other currencies, although gains were capped by concerns over the demand outlook.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 1.4% to $9,089.50 per metric ton by 0229 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.6% to 74,380 yuan ($10,268.94) a ton.
The dollar fell as investors assumed the pick for U.S. Treasury secretary would reassure the bond market and pulled yields lower, shaving some of the dollar's rate advantage.
Despite the rise on Monday, copper prices on both exchanges are set for the second straight monthly loss due to disappointment in the Chinese stimulus released so far and worries that U.S. President-elect Donald Trump will impose tariffs on China and hurt trade flows and economic growth.
Copper inventories in SHFE warehouses have been dipping during China's peak consumption season, but stockpiles in LME and COMEX warehouses are largely unchanged, reflecting weak demand outside China.
LME aluminium CMAL3 rose 1.1% to $2,653 a ton, nickel CMNI3 advanced 0.3% to $16,025, zinc CMZN3 climbed 0.9% to $2,994, lead CMPB3 increased 0.6% to $2,033.50, and tin CMSN3 was up 0.7% at $29,125.
LME cash lead was traded at a $26.94-a-ton to the three-month contract CMPB0-3, the smallest discount since Aug. 23, indicating that near-term supplies are tightening.
SHFE aluminium SAFcv1 increased 0.3% to 20,620 yuan a ton, nickel SNIcv1 was up 1.1% at 127,260 yuan, zinc SZNcv1 advanced 0.1% to 25,265 yuan, lead SPBcv1 climbed 1.7% to 17,200 yuan and tin SSNcv1 rose 0.8% to 243,490 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng
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