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Thursday, February 29, 2024

Copper rises on weaker dollar, but on track for weekly loss

Copper prices rose on Friday as the dollar retreated from a two-month high, although the metal is on track for a weekly loss as traders gauged disappointing China economic data and fears of further US rate hikes.

Three-month copper on the London Metal Exchange rose 0.3% to $8,257 per metric ton by 0328 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange

advanced 0.7% to 68,300 yuan per metric ton.

LME copper was on track for its third straight weekly decline while SHFE copper was also down week-on-week.

The dollar was on track for a fifth weekly gain versus major peers, the longest streak for 15 months, as a resilient US economy argued for high rates for longer while China’s floundering recovery spurred demand for the safety of the US currency.

A firm dollar makes greenback-priced commodities more expensive to holders of other currencies and vice versa.

LME aluminium dipped 0.1% to $2,142.50 a ton, nickel rose 0.3% to $20,330, zinc advanced 0.2% to $2,302, tin increased 0.3% to $25,370 while lead fell 0.3% to $2,136.

SHFE aluminium fell 0.7% to 18,360 yuan a ton, nickel rose 2.3% to 167,850 yuan, zinc increased 0.5% to 20,025 yuan, lead was up 0.4% at 16,075 yuan, and tin climbed 0.7% to 212,540 yuan.

Copper bounces off 2-1/2 month low

Rising tin inventories in both LME and SHFE warehouses are weighing on prices.

SHFE tin is set for its fourth straight weekly loss.

LME tin is on track for the third consecutive weekly decline, the longest losing streak since the week ended March 17.

Backwardation in LME zinc strengthened, with the cash contract at a $12.50-a-ton discount to the three-month contract, as of Thursday, the biggest discount since July 21, as inventories in LME-registered warehouses surged.

Copper rises on weaker dollar, but on track for weekly loss

Source: Brecorder

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