METALS-London copper rises to 1-mth high, buoyed by China demand

Date 10/12/2017 5:27:30 PM Source: Reuters

  MELBOURNE, Oct 12 (Reuters) - London copper climbed to its highest in more than a month on Thursday, underpinned by robust demand in China and a weaker U.S. dollar.

    The dollar index slipped to a two-week low in the wake of the release of minutes from the U.S. Federal Reserve's last policy meeting. A weaker greenback makes commodities priced in dollars more affordable for buyers paying with other currencies.


    The International Monetary Fund this week underlined a rosier outlook for industrial metals use when it said a broad-based global economic upswing would likely be sustained this year and next.


    * LME COPPER: London Metal Exchange copper  CMCU3  had climbed 0.6 percent to $6,840.50 a tonne by 0721 GMT, holding modest gains from the previous session. Copper prices earlier hit their highest since Sept. 8 at $6,850 a tonne, and were edging towards a three-year top of $6,970 marked on Sept. 5. 

    * CHINA DEMAND: Solid demand in China has opened the 'arbitrage window' for copper imports, traders said. Premiums for copper held in China bonded zones have climbed by $9 this week to $74, the highest in more than two months.


    * SHFE COPPER: Shanghai Futures Exchange copper  SCFcv1  climbed 1.9 percent to 53,210 yuan ($8,084) a tonne after earlier climbing as far as 53,350 yuan. That was near last

month's 4-1/2-year high above 53,750 yuan.

    * U.S. INTEREST RATES: Fed policymakers had a prolonged debate about the prospects of a pickup in inflation and slowing the path of future interest rate rises if it did not, according to the minutes of the U.S. central bank's last policy meeting.

  * NICKEL: Shanghai nickel  SNIcv1  climbed 3 percent, while LME nickel  CMNI3  rose 1.3 percent. 

    "Nickel has continued to push higher since the Chinese market reopened after the Golden Week holidays," said ANZ in a report. "With nickel pig iron furnaces being targeted for shutdown over the upcoming winter, demand for refined nickel from the international market looks strong."

    * LME LEAD: London lead prices  CMPB3  fell by 0.9 percent on prospects of rising supply after a China smelter said it had restarted production. A Singapore-based trader also said that enquiries for lead had dried up after China's holiday.

* MMG: MMG Ltd, the international mining unit of state-owned China Minmetals Corp, has become China's preferred developer of overseas projects and is looking at acquisitions beyond its core strengths of copper and zinc, MMG's chief executive said.

     * Investors are now turning their attention to China's leadership meeting next week.       




Edited by SHMET