News

Weaker dollar helps buoy Shanghai, London copper prices

Date Jan 16 2018 15:50:30 Source:Reuters

    SYDNEY, Jan 16 (Reuters) - Copper prices edged up in London and Shanghai markets on Tuesday, helped by a weaker U.S. dollar.

    The dollar index against a basket of six major currencies was hovering just above its weakest level since January, 2015.     

    A weaker greenback makes dollar-denominated commodities cheaper for holders of other currencies.

    A decision on Monday by the People's Bank of China (PBOC) to lift the yuan's official midpoint to the greenback to a 1-1/2 year high was also supporting copper prices.

    "The moves by the PBOC to raise the fixing of the yuan against the U.S. dollar helped improve the already positive sentiment in the market," ANZ Bank said.

    

    FUNDAMENTALS

    * LONDON COPPER: Three-month copper on the London Metal Exchange  CMCU3  had edged up 0.15 percent to $7,221 a tonne by 0250 GMT.

    * SHANGHAI COPPPER: The most-traded copper contract on the Shanghai Futures Exchange  SCFcv1  was up 0.16 percent at 54,750 yuan ($8,514.77) a tonne.

    * RIO TINTO: Rio Tinto  RIO.AX   RIO.L  stuck to a 2018 production target of 510,000-610,000 tonnes of mined copper and 225,000-265,000 tonnes of refined copper. Aluminium production is targeted at 3.5-3.7 million tonnes. For 2017, aluminium production eased 1 percent and mined copper output fell 9 percent.

    * CHINA GDP: China's economic growth is expected to have slowed slightly in the fourth quarter from the previous quarter, a Reuters poll showed, as the government extended a crackdown on debt risks and factory pollution.

    * YUAN: China's central bank on Monday lifted its official yuan midpoint to the highest level in more than over 1-1/2 years, to 6.4574 per dollar, reflecting solid spot yuan performance on Friday and broad dollar weakness in overseas markets.

    * CME COPPER: CME Group CME.O won a bigger slice of the copper market in 2017 from its rivals in London and Shanghai, a Reuters analysis of exchange data showed, a trend that is expected to continue though this year.

    * OTHER METALS: ShFE aluminium SAFcv1 , zinc  SZNcv1  and lead  SPBcv1  were modestly lower, while nickel  SNIcv1  and tin SNIcv1  inched up.

    MARKETS NEWS    

    * Asian shares slumped on Tuesday, as miners were pressured by weaker Chinese iron ore prices, while the euro stood near a 3-year peak on rising expectations that the European Central Bank could pare its monetary stimulus.

 

 

Edited by SHMET

China's Tongling Nonferrous restarts copper smelter after repairs

Date Jan 16 2018 15:49:43 Source:Reuters

     BEIJING, Jan 16 (Reuters) - 

    * China's Tongling Nonferrous Metals Group  000630.SZ  restarted its Jinguan Copper smelting unit on Monday after a brief shutdown for repairs, company source said.

    * The unit, with production capacity of 400,000 tpy of copper, was closed for three days from Friday due to equipment breakdown. "The fault was not big," source added. 

    * Tongling Nonferrous, one of China's biggest copper smelters,

which is based in the eastern Anhui province, did not immediately respond to request for comment.

    * The most-traded copper contract  SCFcv1  on the Shanghai Futures Exchange was down 0.1 pct at 54,810 yuan ($8,527.42) per tonne by mid-session interval on Tuesday.

($1 = 6.4275 Chinese yuan) 

Edited by SHMET

BRIEF-King River Copper Receives Firm Commitments To Raise $1.2 Mln From Investors

Date Jan 15 2018 14:57:49 Source:Reuters

Jan 15 (Reuters) - King River Copper Ltd  KRC.AX :

    * RECEIVED FIRM COMMITMENTS FOR PLACEMENT OF 40 MILLION SHARES AT $0.03 TO RAISE $1.2 MILLION FROM INVESTORS 

Edited by SHMET

London metal prices rise on drop in U.S. dollar

Date Jan 15 2018 14:56:21 Source:Reuters

    MELBOURNE, Jan 15 (Reuters) - Base metals on the London Metal Exchange climbed on Monday, buoyed as the U.S. dollar came under pressure from expectations the European Central Bank may soon start trimming monetary stimulus. 

    FUNDAMENTALS

    * COPPER: LME copper  CMCU3  had risen 0.7 percent to $7,158.50 a tonne by 0117 GMT, reversing small losses from Friday. Prices have ping-ponged in a roughly $7,070-$7,315 range since late December given resilient China demand. 

    * DOLLAR: The U.S. dollar wallowed at three-year lows against a basket of currencies on Monday, while the euro took a breather after soaring on hopes that ECB policymakers were gearing up to further trim their monetary stimulus. A weaker dollar buoys demand for commodities as it makes them cheaper for buyers paying with other currencies.  USD/ 

    * Shanghai Futures Exchange copper  SCFcv1  cut earlier losses to 0.2 percent at 54,550 yuan ($8,443) a tonne.

    * LME zinc  CMZN3  extended Friday's gains to hit its highest in a more than a decade at $3,414.50 a tonne. A dearth of mining investment in recent years has resulted in a shortage of the refined metal used to galvanise steel. 

    * LME aluminium  CMAL3  jumped 1.1 percent to a 10-day peak at $2,239 a tonne. It reached $2,290.50 a tonne in late December, which was its highest in more than four years, partly after output cuts in top producer China eroded global supply.  

    * PERU: Damage in world No. 2 copper producer Peru appeared limited after an earthquake with a magnitude of 7.3 struck on Sunday. No victims have been reported, the governor of Peru's Arequipa region said on Twitter.   

    * CHINA DEMAND: China's commodities buying spree eased slightly in December, with copper, iron ore and crude oil imports all falling from bumper levels a month earlier, the latest sign that Beijing's anti-smog crackdown is slowing industrial activity. 

    * INVESTORS: Hedge funds and money managers trimmed a net long position in COMEX copper contracts in the week to Jan. 9, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

 

 

Edited by SHMET

LME metals climb as dollar plunges to 3-year low

Date Jan 15 2018 14:53:17 Source:Reuters

    MELBOURNE, Jan 15 (Reuters) - Base metals on the London Metal Exchange climbed on Monday, buoyed as the U.S. dollar came under pressure from expectations the European Central Bank may soon start trimming monetary stimulus. 

    The U.S. dollar wallowed at three-year lows against a basket of currencies, while the euro took a breather after soaring on hopes that ECB policymakers were gearing up to further trim their monetary stimulus. A weaker dollar buoys demand for commodities as it makes them cheaper for buyers paying with other currencies.  USD/ 

    Fundamentally, metals have also found support from resilient China demand, said ANZ after China's commodities buying spree eased slightly in December from bumper levels a month earlier.   

    The slight drop in year-on-year import growth rates raised some doubts as to continued strong growth this year, ANZ added.

    "However, we feel such fears will ultimately be unfounded."

   

    FUNDAMENTALS

    * COPPER: LME copper  CMCU3  hit the highest since Jan. 4 at $7,226 a tonne, trading up 1.6 percent, as of 0402 GMT. Prices have oscillated around the range of $7,070-$7,315 since late December notably due to resilient demand from China. 

    * While China's copper imports fell by 8.2 percent in December, this was mostly due to base effect, after last year's imports were particularly strong, said ANZ. "Last month's volumes still represent the third highest over the past two years, suggesting demand remains robust."

    * Shanghai Futures Exchange copper  SCFcv1  shed earlier losses to rise 0.2 percent to 54,810 yuan ($8,533) a tonne.

    * LME zinc  CMZN3  climbed 1 percent, extending Friday's gains to hit its highest in a more than a decade at $3,422 a tonne. A dearth of mining investment in the recent years has resulted in a shortage of the refined metal used to galvanise steel. 

    * LME aluminium  CMAL3  gained 1.3 percent to $2,243.00 a tonne. In late December, it reached $2,290.50 a tonne, which was its highest in more than four years, partly after output cuts in top producer China eroded global supply.  

    * PERU: Damage in world No. 2 copper producer Peru appeared limited after an earthquake with a magnitude of 7.3 struck on Sunday. No victims have been reported, the governor of Peru's Arequipa region said on Twitter.

    * INVESTORS: Hedge funds and money managers trimmed a net long position in COMEX copper contracts in the week to Jan. 9, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday.

 

 

 

Edited by SHMET
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