Copper prices rise on stimulus hopes in top consumer China

  • 1/19/2022
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Jan 19 (Reuters) - Copper prices in London inched higher on Wednesday, supported by expectations of further policy easing in top metals consumer China, although gains were capped by a firmer U.S. dollar. Three-month copper on the London Metal Exchange rose 0.3% to $9,703 a tonne by 0310 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange was steady at 70,050 yuan ($11,026.46) a tonne. China"s central bank will roll out more policy measures to stabilise the economy, vice governor Liu Guoqiang said on Tuesday, following the latest rate cut. read more The dollar was steady after rising 0.5% on Tuesday, bolstered by a jump in U.S. Treasury yields in anticipation of rising interest rates. Copper stocks in LME-registered warehouses climbed to their highest in two months at 94,525 tonnes, easing some concerns about supply tightness. FUNDAMENTALS * LME aluminium rose 0.1% to $3,027 a tonne, nickel was up 1.2% at $22,330, lead edged 0.3% higher to $2,329, zinc gained 0.2% to $3,573 and tin fell 0.4% to $42,135. * ShFE aluminium was up 2% at 21,580 yuan a tonne, nickel gained 0.9% to 164,920 yuan, zinc climbed 1.7% to 24,870 yuan and lead fell 0.8% to 15,500 yuan. Tin was up 1.3% at 318,220 yuan a tonne, having earlier hit a record high of 319,870 yuan. * Nickel inventories in LME-registered warehouses declined further to 94,872 tonnes, the lowest since December 2019. Supply worries kept the premium for LME cash nickel to the three-month contract near its highest in more than a decade at $370 per tonne. * China"s copper exports rose to an annual record of 932,451 tonnes in 2021, according to customs data. read more * China"s aluminium imports in December eased from the previous month, snapping three monthly gains, although imported volumes were strong enough to solidify 2021"s position as a record year of shipments. read more * Industry association Eurometaux has asked EU policymakers to allow member states to support domestic producers of aluminium, zinc and silicon with state aid to ensure supplies of the metals crucial for the transition to low carbon energy. * For the top stories in metals and other news, click or MARKETS NEWS * Asia"s share markets struggled as U.S. Treasury yields hit fresh two-year highs and a global technology stock sell-off unsettled investors worrying about inflation and bracing for tighter U.S. monetary policy. DATA/EVENTS (GMT) 0700 UK CPI YY Dec 0700 Germany HICP Final YY Dec 1330 US Housing Starts Number Dec ($1 = 6.3529 Chinese yuan)

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