Copper hits multi-month highs on hopes of delay in U.S. tariffs
- LME copper was up 0.2pc at $6,110.50 a tonne at 0754 GMT.
- The Asian Development Bank said it has lowered its growth forecasts for developing Asia this year and the next.
- The world's biggest copper consumer, fell for a 17th straight month in November.
The United States is due to slap tariffs on nearly $160 billion worth of Chinese consumer goods on Dec. 15, but a source briefed on the situation said Washington is laying the groundwork for a delay in the tariffs.
China and the United States have been embroiled in a 17-month trade war that has rattled financial markets and weighed on global economic growth.
The most-traded copper contract on the Shanghai Futures Exchange climbed as high as 1pc to 49,060 yuan ($6,969.84) a tonne, a level unseen since April 30. It closed up 0.9pc at 49,000 yuan a tonne.
Three-month copper on the London Metal Exchange (LME) hit near its five-month high of $6,117 a tonne earlier in the session, but gains were limited amid a lack of confirmation on the delay and a weak demand outlook.
LME copper was up 0.2pc at $6,110.50 a tonne at 0754 GMT.
The Asian Development Bank said it has lowered its growth forecasts for developing Asia this year and the next, including those of China.
Auto sales in China, the world's biggest copper consumer, fell for a 17th straight month in November, data from its biggest auto industry association showed. Automobiles account for just less than 10pc of copper consumption in China.
"The ongoing trade dispute is having a tangible impact. Over 2020, we forecast vehicle production and sales growth in China to remain stagnant, while demand from the power sector will also slow," Fitch Solutions said in a report.
FUNDAMENTALS
SPREAD: The discount between LME cash and three-month copper contract expanded to $30.25 a tonne, its biggest since Oct. 16, indicating sufficient nearby supplies.
CHINA COPPER: Refined copper cathode production by major Chinese smelters fell by more than 4pc in November from the previous month to 738,000 tonnes, research house Antaike said.
ALUMINIUM: Warehousing firm ISTIM UK held 35pc of total aluminium stocks in London Metal Exchange-registered warehouses in its Malaysian facilities by the end of November, data from the LME showed on Tuesday.
OTHER PRICES: LME nickel rose 0.5pc to $13,465 a tonne, lead advanced 1.2pc to $1,929 a tonne, while aluminium edged up 0.1pc to $1,757 a tonne.
SHANGHAI PRICES: Aluminium advanced 0.3pc to 14,000 yuan a tonne, nickel jumped 2.4pc to 107,990 yuan a tonne, zinc declined 0.1pc to 17,850 yuan a tonne and lead rose 0.6pc to 15,200 yuan a tonne.