The dollar eased on Wednesday after Powell failed to offer fresh signs of a hawkish push-back against a resilient labour market in the United States, leading investors to bet that interest rates may not rise much further. A weaker dollar makes the greenback-priced copper more attractive for those holding other currencies.
The most-traded March copper contract on the Shanghai
Futures Exchange ended day trading 0.9% higher at
68,640 yuan ($10,115.24) a tonne.
The contract slid last week on weak demand and
higher-than-expected inventory build-up in China over the Lunar
New Year holiday, while lower prices bolstered demand recently,
with end-users also ramping up production, traders said.
Supply-side issues, including First Quantum Minerals' <Ltd FM.TO> suspension of loading operations at a major port in Panama, also aided the sentiment.
"This might support spot prices, but its actual impact on supply tightness remains to be seen as several smelters will start maintenance in March," a Chinese copper smelter said.
Chile, the world's top copper producer, saw exports of the red metal reach $2.98 billion in January, down 21.6% from a year earlier, the central bank said on Tuesday. Glencore's Antapaccay copper mine in Peru has resumed normal operations after closing for 11 days due to attacks by protesters in the South American nation. LME aluminium was up 0.6% at $2,540 a tonne, zinc rose 1.8% to $3,193, lead climbed 1% to $2,119, and tin advanced 3.4% to $27,995. SHFE nickel gained 1.3% to 212,370 yuan a tonne, zinc added 0.3% to 23,470 yuan, tin rose 3.2% to 222,920 yuan, aluminium nudged 0.7% up to 19,180 yuan, lead was up 0.2% at 15,245 yuan. For the top stories in metals and other news, click or ($1 = 6.7858 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; editing by Uttaresh.V, Nivedita Bhattacharjee)
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