METALS-London copper picks up on weaker dollar; tin near 6-month top
(Adds Shanghai closing prices, updates London prices)
BEIJING, Jan 10 – London copper prices rose for
the fourth session in five on Thursday, as a weaker dollar
enabled the metal to hold gains made from optimism overU.S.-China trade talks. A weaker greenback makes dollar-denominated metals cheaperfor holders of other currencies and can support prices.
However, prices in top consumer China, which reported more
disappointing factory data on Thursday, failed to sustain the
momentum, with Shanghai copper slipping 0.1 percent.
Recent transactions in the refined and scrap copper markets
have been ordinary, consistent with the off-season, and
“fundamentals cannot support the copper price,” Jinrui Futures
wrote in a note.Instead, prices for copper, an economic bellwether, will
move higher on improving macro sentiment and lower on weakening
sentiment, the Chinese brokerage added.
FUNDAMENTALS
* LME COPPER: Three-month copper on the London Metal
Exchange was up 0.3 percent at $5,978 a tonne, as of
0716 GMT. The most-traded March copper contract on the Shanghai
Futures Exchange closed down 0.1 percent at 47,510 yuan
($6,996.54) a tonne.
* TRADE: China’s commerce ministry said trade talks with the
United States this week were extensive and detailed, and
established a foundation for the resolution of each others’
concerns. “This would normally have been enough to encourage
metals buyers but the news was rather offset by the Chinese PPI
and CPI numbers falling short of forecasts,” Malcolm Freeman of
Kingdom Futures wrote in a note.
* CHINA: China’s producer price index (PPI) in December rose
at its slowest pace in more than two years.
* USD: The dollar weakened versus major peers due to
growing expectations the Federal Reserve will pause its rate
tightening cycle this year.
* OTHER METALS: The LME complex was higher across the board,
with aluminium, nickel, lead and tin
adding around 0.3 percent each.
* TIN: The metal closed above $20,000 a tonne for the first
time since late June on Wednesday. “The price rise is likely to
have been triggered by concerns about supply, for Indonesia –
the world’s largest tin exporter – has been exporting
considerably less tin since October,” Commerzbank said in a
note.
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