Copper prices rose on Tuesday as a weaker US dollar made greenback-priced metals cheaper for holders of other currencies, although lacklustre data from top consumer China fanned demand concerns and capped gains.
Three-month copper on the London Metal Exchange was up 2% at $7,597 a tonne, as of 0739 GMT, and the most-traded December copper contract on the Shanghai Futures Exchange advanced 1.6% to 63,350 yuan ($8,699.65) a tonne.
The dollar eased from a one-week peak as investors weighed the possibility of a slowdown in the pace of Federal Reserve interest rate hikes in December after a likely sizable increase this month.
Copper falls on growing fears over Chinese demand
LME aluminium rose 0.6% to $2,236 a tonne, tin increased 1.2% to $17,850 a tonne and zinc edged 0.2% higher to $2,702.50 a tonne.
SHFE aluminium gained 0.6% to 17,905 yuan a tonne, tin rose 0.4% to 159,170 yuan a tonne, while zinc fell 1.6% to 22,700 yuan a tonne.
“It’s a bet that the Fed meeting will result in a more dovish stance,” said a metals trader. “(But) it’s all expectations now. Just stick money in bonds and watch it grow.
Don’t bother risking it in risky assets.“ Concerns about demand in China, the world’s top metals user, amid slowing economic activities and rising coronavirus cases and restrictions continued to weigh on the price outlook.
China saw slowing factory activities in October due to protracted COVID-19 restrictions, raising concerns about tepid demand for metals.
SHFE nickel jumped 2.9% to 189,200 yuan a tonne.
The gains came as Chinese battery giant CATL jumped on news that it would indirectly own stakes in major cobalt producer CMOC Group Ltd, reinforcing the demand need for battery metals including nickel.
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