By Mai Nguyen
November 1 (Reuters) – Copper prices rose on Tuesday as a weaker U.S. dollar made greenback-priced metals cheaper for holders of other currencies, though lackluster data from China’s top consumer stoked concerns over demand and capped earnings.
Three-month copper on the London Metal Exchange CMCU3 was up 2% at $7,595.50 a tonne, as of 0552 GMT, and the most traded December copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.2% to 63,140 yuan ($8,682.02) per ton.
The dollar .DXYrelaxed off a one-week high as investors weighed the possibility of a slower pace of Federal Reserve interest rate hikes in December after a probably significant increase this month.
LME aluminum CMAL3 rose 1.1% to $2,246.50 per ton, tin CMSN3 rose 1.4% to $17,870 per tonne and zinc CMZN3 edged up 0.9% to $2,720 per tonne.
SHFE aluminum SAFcv1 gained 0.5% to 17,885 yuan per tonne, tin SSNcv1 rose 0.3% to 158,990 yuan per ton, while zinc SZNcv1 fell 2.1% to 22,595 yuan per ton.
“It’s a bet that the Fed meeting will result in a more dovish stance,” said a metals trader.
“(But) those are just expectations now. Just put money in bonds and watch it grow. Don’t bother risking it in risky assets.”
Concerns about demand in China, the world’s largest user of metals, amid slowing economic activity and increase in coronavirus cases and restrictions continued to weigh on the price outlook.
China has seen slowdown in factory activities in October due to prolonged COVID-19 restrictions, raising concerns about weak demand for metals.
Nickel SHFE SNIcv1 jumped 4% to 188,310 yuan per ton. The gains came as Chinese battery giant CATL 300750.SZ jumped on news that it would indirectly hold stakes in major cobalt producer CMOC Group Ltd 603993.SSreinforcing the need for demand for battery metals, including nickel.
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(Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)
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