London copper was steady on Thursday, supported by strong US economic data and concerns over tight global supply, although a firmer dollar and Federal Reserve's taper timeline put some downward pressure on prices.
Three-month copper on the London Metal Exchange was steady at $9,845.50 a tonne, as of 0240 GMT, having scaled to a near one-month high of $9,880 on Wednesday.
The most-traded January copper contract on the Shanghai Futures Exchange rose as much as 1.6% to 72,260 yuan ($11,311.30) a tonne, its highest since Oct. 22.
Data released on Wednesday showed US weekly jobless claims fell and third-quarter GDP growth was revised higher, but other readings showed consumers paid much higher prices for goods through the third quarter, as inflation continued to accelerate.
The economic data prompted fears that the US Fed could fasten its rate hike and bond purchase elimination, lifting the dollar towards its highest level in more than 16 months.
A firmer dollar makes greenback-priced metals on the LME more expensive to holders of other currencies.
A faster elimination of bond purchase and higher interest rates could reduce liquidity in the financial and dampen economic growth.
Copper is often used to gauge global economic health.
On-warrant LME copper inventories eased to 62,225 tonnes, down nearly 74% from 238,725 tonnes in August.
FUNDAMENTALS
ShFE aluminium rose 1.2% to 19,435 yuan a tonne, nickel climbed 2.1% to 153,930 yuan a tonne and zinc advanced 0.4% to 23,740 yuan a tonne.
ShFE tin rose as much as 2% to 293,690 yuan a tonne, its highest since Oct. 21, after the President of Indonesia, a major tin producer, said the country may stop tin exports from 2024 to attract downstream investments.
- LME aluminium was up 0.2% at $2,709 a tonne, nickel rose 0.5% to $20,950 a tonne, lead traded 0.5% higher at $2,274.50, while tin eased 0.3% to $39,850 a tonne after hitting a record high of $40,300 in the previous session.
Comments
Comments are closed.