NEW DELHI Copper prices eased on Monday, pressured by a stronger US dollar, shrugging off signals of optimism in China with latest economic data showing a slight uptick. Three-month copper on the London Metal Exchange (LME) slipped 0.4% to $8,970.5 per metric ton by 0405 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) gained 0.07% to 73,820 yuan ($10,161.61) a ton.
The dollar crept higher at the beginning of what is shaping up to be a critical week for the prospect of US interest rate cuts, while the yen’s recent rebound was underpinned by wagers on rising rates at home.
A stronger dollar makes greenback-priced metals costlier to holders of other currencies. “We highlight that the market is poised for a period of significant price volatility, with anticipated US dollar strength and shifts in trade policies following a Trump victory acting as major headwinds, while the outlook remains heavily contingent upon China’s economic momentum,” said BMI, a unit of Fitch Solutions.
China’s factory activity expanded modestly for a second straight month in November, an official survey showed, adding to a string of recent data suggesting that the stimulus blitz is finally trickling through the world’s second-largest economy just as Donald Trump ramps up his trade threats.
LME aluminium rose 0.2% to $2,599 a ton, nickel added 0.1% at $15,915, lead climbed 0.3% at $2,078, while zinc declined 0.3% to $3,094 and tin fell 0.6% to $28,730. SHFE aluminium edged up 0.3% at 20,390 yuan a ton, lead advanced 0.7% at 17,490 yuan, tin jumped 2.3% to 242,190 yuan, zinc added 1.3% to 25,550 yuan, while nickel fell 1.2% to 125,690 yuan.
Comments
Comments are closed.