Copper extends gains as US dollar takes a breather
Adds comments, detail and updates prices
Nov 20 (Reuters) -Copper extended gains to a fourth session on Wednesday as the U.S. dollar eased after its recent blazing rally, while London aluminium held firm after China decided to remove export tax rebates.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.7% to $9,146.5 permetric ton by 0245 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.8% to 74,600 yuan ($10,303.44) a ton.
The dollar gave back some of its recent bumper gains, making greenback-priced metals more affordable for other currency holders. USD/
"A weaker dollar has done most of the heavy lifting for base metals. Copper bounced off a crucial technical level last week," said Kyle Rodda, a senior financial markets analyst at Capital.com.
"Concerns about Chinese demand remain present and will be difficult to shake off, while uncertainty persists about trade-wars and the lack of Chinese stimulus."
Top base metals consumer China has seen slowing economic growth and government policies so far haven't managed to uplift investor confidence.
LME aluminium CMAL3 climbed 0.5% to $2,657.5 a ton, rising for the second straight session.
China on Friday saidit would cancel the 13% export tax refund for some aluminium and copper products starting Dec. 1. While China'scopper product exports are considerable, thevolume of aluminium exports is significantlyhigher.
"These measures are likely to support prices on the LME in the long-term as supply in marketsoutside China is threatening to become scarcer or more expensive," Commerzbank said.
LME nickel CMNI3 increased 0.6% to $15,955, zinc CMZN3 rose 0.9% to $2,977, lead CMPB3 firmed 0.8% at $2,016 and tin CMSN3 advanced 1% to $29,180.
SHFE aluminium SAFcv1 rose 1.3% to 20,740 yuan a ton, nickel SNIcv1 added 1.5% to 126,370 yuan, tin SSNcv1 firmed0.3% to 242,860 yuan, lead SPBcv1 gained 0.5% at 16,855 yuan and zinc SZNcv1 advanced1.1% at 24,965 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu and Sumana Nandy
For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C
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