The U.S. dollar tumbled to a one-year low against a basket of currencies on Friday after data showed U.S. producer prices unexpectedly fell by 0.5% in March, and signs that underlying producer inflation was subsiding. A weaker greenback makes dollar-priced metals cheaper for buyers holding other currencies.
"While the demand fundamentals for copper remain robust over the medium and longer term, we continue to see downside risk to near-term prices on the back of a slowing global economy in the 2H (second-half) 2023, and China showing signs of weaker-than-expected demand," analysts at National Australia Bank Ltd said in a research note. The most-traded May copper contract on the Shanghai Futures Exchange gained 1.3% to 70,050 yuan ($10,236.29) a tonne.
In Chile, the world's top producer of copper, production should pick up in the coming years after a recent slump, mining minister Marcela Hernando told Reuters on Thursday.
Among other metals, LME aluminium advanced 0.61% to $2,381.50 a tonne, lead dipped 0.07% to $2,145, and nickel was up 0.75% at $23,875. Zinc was up 0.92% at $2,863 and tin added 1.87% at $24,900. SHFE aluminium advanced 1.27% to 18,725 yuan, zinc added 1.75% at 22,395 yuan, and lead nudged 0.10% lower to 15,305 yuan. Tin climbed 2.52% to 197,880 yuan, while nickel was up 1.96% at 185,250 yuan. For the top stories in metals and other news, click or ($1 = 6.8433 Chinese yuan) (Reporting by Neha Arora; Editing by Rashmi Aich and Subhranshu Sahu)
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