HANOI: Copper prices advanced on Friday, on track for the third straight week of gain, on a softer dollar and supportive data from top consumer China.
Three-month copper on the London Metal Exchange rose 0.2% to $8,477.50 per metric ton by 0721 GMT, while the most-traded January copper contract on the Shanghai Futures Exchange advanced 0.3% to 68,360 yuan ($9,568.87) a ton. SHFE copper is set for the third weekly gain and the LME contract is also set for the same milestone.
The dollar eased as traders weighed data that showed inflation was easing, stoking expectations that interest rates had peaked and central banks would soon start cutting rates. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.
Metals prices were boosted after data showed China’s factory activity unexpectedly expanded in November, driven by rising orders, the private Caixin survey showed. However, gains were limited on worries of how well China’s economy is performing, following official Chinese data on Thursday showing manufacturing activity shrank for a second straight month in November and at a quicker pace.
The Caixin survey covers around 650 private and state-owned manufacturers and, according to economists, focuses more on export-oriented firms in coastal regions, while the official survey samples 3,200 companies across China. “We will only see slight improvement to industrial metal prices in the coming months,” BMI analysts said in a note. Supply concern for copper also helped support prices, they said.
LME aluminium eased 0.1% to $2,190.50 a ton, zinc dipped 0.5% to $2,462.50, lead increased 0.1% to $2,125, tin climbed 1.6% to $23,615 while nickel eased 0.6% to $16,550.
SHFE aluminium edged down 0.3% at 18,530 yuan a ton, tin rose 1.1% to 198,200 yuan, while nickel fell 2.6% to 129,380 yuan, zinc eased 0.9% to 20,620 yuan, and lead shed 0.5% to 15,785 yuan.
Comments
Comments are closed for this article.