METALS-Shanghai Aluminum hits 3-month low on strong dollar, demand slumps


April 12 (Reuters)Aluminum prices in Shanghai fell to their lowest level in more than three months on Tuesday, dragged down by a stronger dollar and growing demand concerns amid COVID-19 restrictions in China, the first consumer.

FUNDAMENTALS

* The most traded May aluminum contract on the Shanghai Futures Exchange SAFcv1 was down 2% at 20,915 yuan ($3,282.02) a tonne at 0155 GMT, after falling to its lowest level since Jan. 6 at 20,605 yuan ($3,233.37).

* Three-month aluminum on the London Metal Exchange CMCU3 rose 0.7% to $3,270 a tonne.

* Nickel ShFE SNIcv1 slipped 1.9% to 203,480 yuan ($31,930.45) a ton.

* The dollar index was back above 100 on Tuesday morning, supported by strong US yields ahead of inflation data. The reading should show that US prices have risen the most in more than 16 years, bolstering views on the Fed’s aggressive tightening policy. XRF/

* A stronger dollar makes dollar-denominated metals more expensive for buyers using other currencies.

* China’s financial hub of Shanghai began easing its lockdown in some areas on Monday despite a record of more than 25,000 new cases, as authorities sought to shake up the city after more than two weeks.

* The city reported 22,348 new asymptomatic cases and 994 symptomatic infections for April 11.

* China’s production of copper cathodes in March edged up 0.3% from February despite maintenance at some smelters, state-backed research house Antaike said on Monday, citing the higher number of days in March.

* For top metal stories and other news, click TOP/MTL or MET/L

MARKET NEWS

* Asian financial markets were cautious as U.S. Treasury yields hit a three-year high ahead of inflation data from the country in March, which could herald even more aggressive interest rate hikes of from the Federal Reserve. MKTS/GLOB

DATA/EVENTS (GMT)

0600 Germany HICP final March YY

0600 United Kingdom ILO Unemployment rate Feb.

0600 United Kingdom Applicant Count Unem Chng Mars

0900 Germany ZEW Current Conditions April

0900 Germany ZEW Economic Sentiment April

1230 US CPI YY/MM SA March

LME Copper RATES 3 months CMCU3

Most active copper ShFE SCFcv1

Three Month LME Aluminum CMAL3

Most Active ShFE Aluminum SAFcv1

Three-Month LME Zinc CMZN3

Zinc ShFE most active SZNcv1

Three-month LME advance CMPB3

Lead ShFE most active SPBcv1

Nickel LME three months CMNI3

Most Active Nickel ShFE SNIcv1

Three Month LME Box CMSN3 Most active ShFE tin SSNcv1

ARBS

LMESHFCUc3

LMESHFALc3

LMESHFZNc3

LMESHFPBc3

LMESHFNIc3

($1 = 6.3726 yuan)

(Reporting by Brijesh Patel in Bengaluru; Editing by Uttaresh.V)

((Brijesh.Patel1@thomsonreuters.com; In US +1 651 848 5832, Outside US +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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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