Copper prices steady ahead of US jobs data

LONDON: Copper steadied on Friday ahead of key US jobs data that is expected to guide the Federal Reserve on the timing of a plan to reduce stimulus in the world's largest economy.

Benchmark copper on the London Metal Exchange was up 0.1% at $9,389 per tonne by 1030 GMT. The metal used mainly in power and construction is set to end the week marginally higher, adding to a 4% weekly gain in the previous week.

The dollar sank to its lowest in almost a month against major rivals, supporting metals prices by making greenback-priced commodities cheaper for holders of other currencies.

Ahead of the US non-farm payrolls report, due at 1230 GMT, data on Thursday suggested an improvement in the labour market as the number of Americans filing new claims for jobless benefits fell last week, while layoffs dropped to their lowest level in more than 24 years in August.

"The Labour market report today is important to the assessment of the Fed," said Commerzbank analyst Daniel Briesemann.

"Everyone is waiting for the non-farm payroll data and they should move the base metals depending on what happens with the dollar."

Aluminium rises to 10-year high as supply fears grow

Inventories: Visible stocks of copper were down, underpinning prices. On-warrant copper stocks in LME-registered warehouses have fallen by a third in the last two weeks to 152,475 tonnes.

In warehouses monitored by the Shanghai Futures Exchange, weekly copper stocks fell 15.9% to 69,278 tonnes.

China: Activity in China's services sector slumped into sharp contraction in August, a private survey showed, as restrictions to curb the COVID-19 Delta variant threatened to derail the recovery in the world's largest metals consumer.

Aluminium: A prolonged period of high aluminium prices created partly by output cuts in China is expected to encourage new capacity in other parts of the world, which will eventually weigh on prices trading at 10-year highs.

Aluminium was virtually flat at $2,697 a tonne.

Other Metals: Zinc added 0.5% to $2,995 a tonne, lead shed 0.6% to $2,299, tin was down 0.5% to $33,335 while nickel was steady at $19,460.