LONDON: Copper rose on Thursday on a weaker dollar and as the market awaited cues from China-US trade talks that have started in Beijing.
The world’s two biggest economies have imposed import tariffs on each other’s goods, including Chinese aluminium and US aluminium scrap, and threatened more action in a trade dispute that has roiled metals markets.
Copper added 0.8 percent to $6,873 a tonne in official rings, close to one-week highs and marking the second straight session of gains.
“The dollar is a little weaker this morning, meaning higher metal prices, and that is what we see across the board in precious metals as well,” said Julius Baer analyst Carsten Menke.
He added that trade talks between China and the United States could drag on for weeks and that the first round of talks are unlikely to yield much.
TRADE: A US trade delegation arrived in Beijing on Thursday for tariffs talks, with Chinese state media saying that China will stand up to US bullying if needed but that it is better to work things out at the negotiating table.
DOLLAR: The dollar index edged 0.1 percent lower, slipping from four-month highs. A weaker US currency makes dollar-denominated commodities such as zinc cheaper for non-US firms, which could boost demand.
ZINC: Benchmark zinc touched a low of $3,034 a tonne but in official trading was down 0.1 percent at $3,043.
STOCKS: Headline inventories of zinc in LME-approved warehouses dropped by 225 tonnes to 236,775 tonnes. The amount of cancelled inventory – stock earmarked for delivery – was very low at 5.6 percent, LME data showed.
ZINC TREATMENT CHARGES: The zinc industry agreed a 15 percent drop in annual zinc processing fees to $147 a tonne, miner and metals smelting company Nyrstar said, with supply dwindling in a tight market.
GLENCORE: The miner and trader said that copper output in its first quarter rose 7 percent to 345,000 tonnes and that the ramp-up of its Katanga cobalt and copper mine in the Democratic Republic of Congo was on track.
RIO TINTO: Rio Tinto’s majority-owned aluminium smelter in New Zealand is expanding output after securing a new energy deal, the plant said this week, as a recovery in the price of the metal boosts interest among global producers.
RUSAL: The chairman of En+ Group on Wednesday said he was working on implementing a plan that En+ hopes will lead to the United States lifting sanctions on the company, the biggest shareholder in aluminium giant Rusal.
PRICES: Aluminium was bid 0.8 percent higher at $2,340 a tonne, lead was bid up 0.4 percent at $2,278, tin was bid at a steady $21,110 and nickel was bid up 2.5 percent at $14,335.
Source: Brecorder
