LONDON: Copper rebounded from a more than two-week low to trade higher on Friday on renewed hopes of a US interest rate cut, boosting sentiment after a tech-driven equities selloff spilled over into commodities markets.
Benchmark three-month copper on the London Metal Exchange was up 0.4percent at USD10,786 a metric ton as of 1730 GMT, still on course for a weekly decline of 0.6 percent. The metal widely used in power, construction and manufacturing earlier fell as much as 1.2percent to USD10,607.50, its lowest since November 5.
New York Federal Reserve President John Williams, a voting member of the Federal Open Market Committee, said on Friday the US central bank can still cut rates “in the near term” without putting its inflation goal at risk. “We remain sanguine given the recent range trading nature of our markets,” broker Marex said in a note on LME metals. “Any down move is going to be driven by stock market crash rather than any shift in the medium-term fundamental positive outlook.” In top metals consumer China, the Yangshan premium, an indicator of Chinese appetite for copper imports, has picked up to USD34 a ton, from a four-month low of USD32 at the start of the week.
The rest of the LME complex was mostly lower. Aluminium fell 0.4 percent to USD2,802.50 a ton, zinc was down 0.9percent to USD2,987.50 after notching a one-month low, and tin slipped 0.1percent to USD36,945. Lead fell by 1.1percent to USD1,987 after 63,725 tons of warrant cancellations - or orders to remove metal from LME warehouses - in Singapore and Kaohsiung.
Nickel rose 0.4 percent to USD14,555 a ton, having earlier touched its lowest in seven months. Reuters reported on Friday that Indonesia-based joint venture QMB has cut production at its nickel-cobalt plant in Morowali following a safety inspection.