METALS-Copper prices rise following appeasement of problems with Chinese demand and low inventories

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Band Eileen Soreng

November 24 (Reuters)London copper prices edged up on Wednesday as tight supplies and easing concerns over Chinese demand gave the metal some support, but a firmer dollar capped gains.

Copper at three months on the London Metal Exchange CMCU3 rose 0.3% to $ 9,737.50 a tonne at 06:30 GMT.

The most traded copper contract in January on the Shanghai Futures Exchange SCFcv1 was up 0.2% to 71,110 yuan ($ 11,131.29) per ton.

Volumes were expected to be low as the Thanksgiving holiday approached in the United States.

The dollar index = USD was stable after peaking more than 16 months on Tuesday when Federal Reserve Chairman Jerome Powell was appointed for a second term, fueling expectations of a faster rise in interest rates. USD /

A firmer dollar makes dollar-denominated commodities more expensive for buyers using other currencies.

“Improving electricity supply in China alleviates some of the concerns related to downstream demand (for copper). We expect the decline to remain protected as the tightening is expected to persist in the near term,” said ANZ analyst Soni Kumari.

Copper stocks in warehouses registered by ShFE CU-STX-SGH were at 34,918 tonnes, the lowest since June 2009.

LME copper stocks on mandate MCUTX-TOTAL edged up to 62,775 tonnes, but still down 73.7% from 238,725 tonnes seen in August.

“Metal prices should (also) benefit from China’s latest announcement to ease fiscal policy and more support for the housing market,” Kumari added.

China will maintain reasonably abundant liquidity and reduce financing costs, especially for small businesses, in an effort to support the downturn in the economy, while some Chinese banks have been urged to extend more loans to real estate companies to project development.

FUNDAMENTALS

* Indonesia may halt tin exports in 2024 as part of efforts to attract investment in the resource processing industry and improve the country’s external balance, President Joko Widodo said.

* Aluminum ShFE SAFcv1 slightly increased 0.5% to 19,280 yuan per ton, nickel SNIcv1 rose 1.1% to 152,980 yuan per ton and lead SPBcv1 gained 2.2% to 15,270 yuan per ton.

* LME aluminum CMAL3 was up 0.7% to $ 2,688 per tonne, nickel CMNI3 increased 1.1% to $ 20,575 per tonne, zinc CMZN3 was 0.7% higher at $ 3,325 per tonne and lead CMPB3 gained 1.3% to $ 2,281.50 a tonne.

* For the best articles on metals and other news, click TOP / MTL Where MET / L

($ 1 = 6.3883 yuan)

(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V and Rashmi Aich)

(([email protected]; In the US +1 646 223 8780, Outside the US +91 80 6749 6131; Reuters Mail: [email protected]))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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