2023-11-06 06:10:47
Copper prices in London rose on Monday, helped by a weak U.S. dollar, but gains were limited by a slowdown in winter demand in China, the world’s top consumer, and a recent increase in inventories.
Three-month copper on the London Metal Exchange was up 0.4% at $8,208.50 a metric tonne by 0539 GMT, extending its weekly gain from Friday.
The dollar index hovered around a six-week low on Monday, as U.S. jobs data released last Friday reinforced investor expectations that the Federal Reserve will hold interest rates during its December meeting.
The greenback lost more than 1% last week, its biggest decline since mid-July.
A weaker dollar makes purchasing raw materials less expensive and therefore supports metal prices.
The decline in the dollar and the stimulus measures implemented by China have strengthened investors’ appetite for risk.
However, destocking of global copper inventories is slowing, which might limit price gains, analysts at Guotai Junan Futures said in a note.
Copper stocks in SHFE warehouses rose 11.3% last Friday, but remained near their lowest levels in a year. LME stocks showed a decline following months of increases.
The most-traded December copper contract on the Shanghai Futures Exchange lost 0.2% to 67,560 yuan ($9,277.80) per tonne.
The metal used in the energy, transportation and construction sectors faces slower seasonal consumption in winter, while an uneven economic recovery in China has also added uncertainty to its demand outlook.
LME aluminum rose 0.1% to $2,257 a tonne, nickel gained 0.1% to $18,240, zinc was little changed at $2,526, lead edged down 0, 2% to $2,168, and tin slipped 0.4% to $24,270.
SHFE aluminum rose 0.1% to 19,200 yuan per tonne, zinc rose 0.2% to 21,455 yuan, lead rose 0.2% to 16,590 yuan, nickel rose 1% to 143,540 yuan, and tin rose 0.4% to 207,110 yuan.
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($1 = 7.2819 yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi Aich and Mrigank Dhaniwala)
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