METALS-London copper rebounds as dollar pauses in bullish run

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates prices) Feb 7 (Reuters) - London copper prices rebounded on Tuesday from a four-week low hit in the previous session, as the dollar weakened, making greenback-priced metals cheaper to holders of other currencies. Three-month copper on the London Metal Exchange rose 0.5% to $8,912 a tonne by 0809 GMT, after four straight sessions of losses. The dollar eased after a rally in the previous session, but hovered near a one-month peak as traders raised their forecasts for U.S. Federal Reserve interest rate levels needed to tame inflation. Meanwhile, First Quantum Minerals Ltd suspended loading operations at a major port in Panama, blocking its path to export from the Cobre Panama copper mine. "A prolonged disruption to shipping activity could impact mining operations due to limited storage capacity," ING analysts said in a report. The most-traded March copper contract on the Shanghai Futures Exchange fell 0.3% to 68,360 yuan a tonne, tracking overnight losses in London. Copper prices have been falling in recent weeks as traders and investors reassessed their expectations for the speed and scale of any demand recovery in China after the country removed its strict COVID-19 restrictions. On the supply side, global copper smelting activity in January rose to the highest in a year as plants in top refined metal producer China boosted output, data from satellite surveillance of metal processing plants showed on Monday. LME aluminium dipped 0.1% to $2,531.50 a tonne, zinc fell 0.4% to $3,119 a tonne, nickel shed 1.1% to $26,960 a tonne, while tin rose 0.8% to $27,100 a tonne. SHFE nickel fell 2.4% to 209,850 yuan a tonne, zinc dropped 0.8% to 23,365 yuan a tonne, lead declined 0.3% to 15,235 yuan a tonne, tin shed 1.9% to 216,900 yuan a tonne, while aluminium rose 0.7% to 19,095 yuan a tonne. The United States is considering raising the tariff on Russian-made aluminium to 200%, a U.S. official said on Monday. "If the United States goes ahead and imposes the tariff on Russian aluminium, it will likely have a limited impact on the global market," said ING analysts, adding that U.S. aluminium imports from Russia were less than 10% of total imports. For the top stories in metals and other news, click or (Reporting by Mai Nguyen in Hanoi; editing by Uttaresh.V, Savio D'Souza and Subhranshu Sahu)

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