METALS-Copper rises on weaker dollar and China demand hopes

Kitco Media
By Reuters
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Reuters
(Updates prices) March 7 (Reuters) - Copper prices edged higher on Tuesday as a softer dollar made the greenback-priced metal cheaper for holders of other currencies, while consumption in China was seen improving this month. The dollar was subdued ahead of a testimony by Federal Reserve Chair Jerome Powell, which could influence the U.S. central bank's interest rate policy.


Three-month copper on the London Metal Exchange rose 0.2% to $8,936 a tonne by 0757 GMT, and the most-traded April copper contract on the Shanghai Futures Exchange increased 0.1% to 69,590 yuan ($10,050.55) a tonne. Copper prices were also boosted by expectation that demand from top consumer China would improve from as early as March, although a lower-than-expected economic growth target dented some of the hopes. "Downstream (Chinese copper) procurement is currently showing signs of a gradual recovery," Huatai Futures said in a report. LME aluminium eased 0.4% to $2,372.50 a tonne and zinc dipped 0.1% to $3,030.50 a tonne, tin shed 0.9% to $24,335 a tonne and lead fell 0.8% to $2,105.50 a tonne. SHFE nickel declined 0.4% to 188,780 yuan a tonne, zinc increased 0.5% to 23,480 yuan a tonne, tin was down 0.2% at 199,030 yuan a tonne and aluminium eased 0.3% to 18,610 yuan a tonne. Global aluminium producers have offered Japanese buyers premiums of $125-$145 per tonne for April-June primary metal shipments, up 45%-71% from this quarter, five sources told Reuters. The offers, if agreed by buyers, would mark the first increase in six quarters and the highest level since the October-December quarter in 2022, reflecting a view from producers that demand from automakers is set to pick up. For the top stories in metals and other news, click or ($1 = 6.9240 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips and Subhranshu Sahu)

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