Copper extends gains as US dollar weakens
Nov 20 (Reuters) -Copper extended gains to a fourth session on Wednesday as the U.S. dollar weakened, while London aluminium held firm after China decided to remove export tax rebates.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.6% to $9,143.5 per metric ton by 0140 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 gained 0.8% to 74,600 yuan ($10,305.15) a ton.
The dollar pulled back after its recent blazing rally, making greenback-priced metals more affordable for other currency holders. USD/
LME aluminium CMAL3 climbed 0.5% to $2,657 a ton, rising for a second straight session.
China said on Friday it would cancel a 13% export tax refund for aluminium and copper products from Dec. 1. China's copper product exports are considerable, while the volume of aluminium exports is significantly higher.
"The reduction in export subsidies is probably also a measure to slow down the growth in smelting capacity, which has also continued to increase due to rising exports," Commerzbank said in a note.
"These measures are likely to support prices on the LME in the long term, as supply on markets outside China is threatening to become scarcer or more expensive."
LME nickel CMNI3 increased 0.4% to $15,930, zinc CMZN3 rose 0.6% to $2,969.5, lead CMPB3 was up 0.5% at $2,011 and tin CMSN3 advanced 1% to $29,160.
SHFE aluminium SAFcv1 rose 1.2% to 20,720 yuan a ton, nickel SNIcv1 rose 1.5% to 126,430 yuan, tin SSNcv1 added 0.2% to 242,580 yuan, lead SPBcv1 was up 0.4% at 16,850 yuan and zinc SZNcv1 added 0.9% at 24,905 yuan.
For the top stories in metals and other news, click
TOP/MTL or MET/L
Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Subhranshu Sahu
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
Foreign exchange rates FX=SPEED GUIDES LME/INDEX
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.