News

London copper rises for second day on weaker dollar

Date 2/13/2018 4:11:18 PM Source: Reuters

    BEIJING, Feb 13 (Reuters) - London copper prices climbed for a second session on Tuesday, bouncing back from two-month lows hit last week, helped by a weaker dollar tracking a broad recovery in global equities.

    Traders were looking to cover their positions before the Lunar New Year holiday, wrote Matt France, head of institutional metal sales, Asia, at brokerage Marex Spectron.

    The holiday will see China, the world's top copper consumer, and the Shanghai Futures Exchange (ShFE) shut down for a week.  

    "The (base metals) complex feels constructive here, having weathered some meaningful long liquidation and indeed started to see some shorts build on the back of last week's macro sell-off," France said. 

    FUNDAMENTALS

    * LME COPPER: Three-month copper on the LME  CMCU3  was up 1.4 percent at $6,925 a tonne at 0726 GMT, extending gains from the previous session, when it ended up 1.1 percent.

    * SHFE COPPER: The most-traded April copper contract on the ShFE  SCFcv1  rose for the first time in three days, closing up 1.5 percent at 52,140 yuan ($8,230.47) a tonne.

    * U.S. DOLLAR: The dollar index  .DXY  slid by 0.3 percent. A weaker dollar makes metals cheaper for holders of other currencies and can support prices.   

    * OTHER METALS: Zinc  CMZN3 , nickel  CMNI3  and aluminium  CMAL3  made gains of around 1 percent in London, while recent laggard  CMPB3  lead was up by 0.3 percent.

    * COPPER: Aurubis AG  NAFG.DE , Europe's biggest copper smelter, is in advanced negotiations to sell its flat rolled products unit to German cooper products company Wieland-Werke AG as Aurubis looks to expand into other metals besides copper.

    * ALUMINIUM: U.S. President Donald Trump will meet with a bipartisan group of lawmakers on Tuesday to discuss trade matters, as he ponders whether to takes steps to limit steel and aluminium imports seen as damaging to U.S. businesses.

    * BHP: Australian miner BHP Billiton  BHP.AX  said on Tuesday it will record a $1.8 billion income tax expense due to cuts in the U.S. Federal corporate income tax rate. 

    * COBALT: Makers of electric vehicle batteries will have to keep using scarce, expensive cobalt in their products for the foreseeable future despite a push towards higher nickel compositions, materials technology company Umicore  UMI.BR  said on Monday. 

    MARKETS NEWS    

    * Asian stocks pulled further away from two-month lows on Tuesday, lifted by Wall Street's extended rebound from last week's steep fall, but investors remained cautious ahead of U.S. inflation data later in the week.

 

Edited by SHMET