Markets

Copper climbs as China trade brightens, imports jump

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Benchmark copper on the London Metal Exchange closed 1.1 percent lower at $5,692 tonne, after falling to its lowest since Jan. 10 in the previous session.

"The China data definitely shows a recovery from recent lows, so its not surprising to see prices higher," said Eugene Weinberg, head of commodities research at Commerzbank.

CHINA: China's 2017 export outlook brightened considerably after it reported forecast-beating trade growth in March and US President Donald Trump softened his anti-China rhetoric in an abrupt policy shift.

COPPER: China's imports of copper rose 26.5 percent from month ago to 430,000 tonnes in March, data from the General Administration of Customs showed.

DOLLAR: The dollar index slid to a two-week low after US President Donald Trump said it was too strong. A lower US currency makes dollar-denominated metals cheaper for holders of other currencies, which could boost demand.

TECHNICALS: Copper support seen at Wednesday's low around $5,600/15, a breach could see a test of $5,500. Resistance seen at $5,800 near the 100-day moving average.  * China's central bank has been quietly boosting its policy independence and regulatory reach as it seeks to contain risks to the financial system, policy insiders said, helping ensure stability before a five-yearly leadership team transition this year.

Losses amounting to hundreds of millions of dollars appear to be pushing Indonesia and miner Freeport McMoRan to resolve a row that has crippled operations at Grasberg for three months.

Chile, the world's biggest copper producer, faces a fresh threat of labour action when a union at the large Chuquicamata mine said it had blocked access as a "warning" over planned changes to job opportunities.

The global zinc market moved into a surplus of 19,800 tonnes in February from a deficit of 22,300 tonnes in January, data from the International Lead and Zinc Study Group showed.

ALUMINIUM: China exported 410,000 tonnes of unwrought aluminium and aluminium products, up from February's 260,000 tonnes. China's aluminium makers have stepped up exports as a healthier global manufacturing climate and declining world stockpiles boost demand.

OTHER METALS: LME aluminium gained 0.6 percent to $1,910, nickel inched 0.1 percent lower to $9,750, while tin was up 1 percent at $19,605. Lead fell 0.1 percent to $2,239. Zinc fell 0.7 percent to $2,624, edging close to January lows touched this week.

 

Copyright Reuters, 2017