Base metals rise on softer dollar, but physical demand remains tepid
Oct 11 (Reuters) -Base metals prices rose on Friday, supported by a weaker U.S. dollar, although they were down on a weekly basis in London as a recent rally in prices hurt physical demand.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.4% at $9,759 per metric ton by 031 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.6% to 77,490 yuan ($10,957.76) a ton.
The U.S. dollar fell from two-month highs after signs of weakness in the labour market boosted the case for quicker Federal Reserve rate cuts. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.
Meanwhile, LME copper was down 1.9% on a weekly basis, set for its biggest drop since the week of Sept. 2. The SHFE was closed from Oct. 1-7 for a public holiday.
"Copper demand has weakened due to surging prices over the last few days. Prices are not stable yet, and this price level is still higher than before the U.S. cut interest rates. Buyers are adopting a wait-and-see approach," said CRU analyst He Tianyu.
Metal prices were further weighed down this week after China's stimulus announcements on Tuesday failed market expectations and lacked detail.
Market participants are now awaiting further details on Chinese stimulus, scheduled for Saturday.
LME aluminium CMAL3 increased 1.3% to $2,619 a ton, nickel CMNI3 edged up 0.5% at $17,630, zinc CMZN3 increased 1% to $3,118, lead CMPB3 rose 0.8% to $2,082 and tin CMSN3 climbed 0.7% to $33,050.
SHFE aluminium SAFcv1 increased 1.5% to 20,785 yuan a ton, nickel SNIcv1 jumped 1.6% to 134,420 yuan, zinc SZNcv1 climbed 2.7% to 25,510 yuan, lead SPBcv1 edged up 0.5% at 16,665 yuan and tin SSNcv1 jumped 1.6% to 268,380 yuan.
For the top stories in metals and other news, click
TOP/MTL or MET/L
($1 = 7.0717 yuan)
Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema
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.
