London copper prices steady as US dollar weakens – ET Auto

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The spot market in China will likely remain tepid, leading to a build-up in inventories which could weigh on prices, they said.

London copper prices were steady on Monday as the U.S. dollar weakened, while investors gauged the demand outlook from top consumer China after its central bank surprised markets by keeping its medium-term policy rate unchanged.

Three-month copper on the London Metal Exchange held ground at USD 8,341 per metric ton by 0806 GMT, having shed 1.5% last week.

The most-traded February copper contract on the Shanghai Futures Exchange lost 0.6% to 67,700 yuan (USD 9,436.72) per ton.

The dollar ebbed as bets for a rate cut by the Federal Reserve in March have gathered steam after data on Friday showed U.S. producer prices unexpectedly fell last month.

A weaker U.S. dollar makes it cheaper for traders to buy the greenback-priced commodity.

China’s central bank left the medium-term policy rate unchanged on Monday, defying market expectations for a cut as a weaker currency limited the scope of monetary easing in the near term to boost the economy.

Investors are awaiting China’s release of its fourth-quarter gross domestic product (GDP) and December industrial production on Wednesday.

According to GF Futures analysts, pre-holiday replenishment from end-users was weaker than usual, despite relatively good demand from the air-conditioning sector.

The spot market in China will likely remain tepid, leading to a build-up in inventories which could weigh on prices, they said.

On-warrant copper stocks on SHFE warehouses jumped 30% on Friday, from a more than one-year low level.

LME lead was up 0.4% at USD 2,100, tin rose 0.8% to USD 24,830 and zinc gained 0.6% to USD 2,530, while nickel fell 0.5% to USD 16,255 and aluminium moved 0.4% lower to USD 2,210.50 a ton.

SHFE nickel lost 1.4% to 127,200 yuan a ton, lead slid 1.6% to 16,200 yuan, aluminium eased 0.6% to 18,885 yuan, while tin rose 1.4% to 209,460 yuan, zinc gained 0.4% to 21,175 yuan.

  • Published On Jan 15, 2024 at 06:48 PM IST

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