Base metals rise on softer US dollar
Updates prices, adds quotes
By Mai Nguyen
Nov 25 (Reuters) -Base metal prices rose on Monday as the U.S. dollar eased, making greenback-priced metals cheaper for holders of other currencies, although demand outlook concerns capped further gains.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.9% at $9,045 per metric ton by 0728 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed up 0.3% at 74,160 yuan ($10,237.16) a ton.
The dollar surrendered some of its recent gains as the pick for U.S. Treasury secretary seemed to reassure the bond market and pulled yields lower, shaving some of the currency's rate advantage.
"Copper prices will find support at this level. Retracing U.S. dollar from this year's high should protect the downside," said ANZ analyst Soni Kumari.
Despite the day's gains, copper prices on both exchanges are set for theirsecond straight monthly loss on disappointing Chinese stimulus so far and worries that U.S. President-elect Donald Trump will impose tariffs on China, hurting trade flows and economic growth.
"On the fundamental side, while Trump's import tariffs will be a headwind for demand prospects in the medium and long-term, faster inventories drawdown in China and improving spot premium will be supportive in the weeks ahead," Kumari said.
Copper inventories in SHFE warehouses have dipped so far during China's peak consumption season, which spans from November to December.
On Monday, LME aluminium CMAL3 rose 1.9% to $2,674.50 a ton, nickel CMNI3 advanced 0.2% to $16,005, zinc CMZN3 climbed 0.7% to $2,987.59, lead CMPB3 increased 0.5% to $2,032.50, and tin CMSN3 gained 0.7% to $29,105.
LME cash lead was traded at $26.94-a-ton to the three-month contract CMPB0-3, the smallest discount since Aug. 23, indicating tighter near-term supplies.
SHFE aluminium SAFcv1 increased 0.3% to 20,620 yuan a ton, nickel SNIcv1 added 0.8% to 126,950 yuan, lead SPBcv1 climbed 1.6% to 17,190 yuan, tin SSNcv1 rose 0.2% to 242,130 yuan, and zinc SZNcv1 advanced 0.1% to 25,275 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng, Sumana Nandy and Sonia Cheema
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