Copper prices rose on Tuesday as a weaker U.S. 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 CMCU3 was up 2% at $7,595.50 a tonne, as of 0552 GMT, and the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 advanced 1.2% to 63,140 yuan ($8,682.02) a tonne.
The dollar .DXYeased 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.
LME aluminium CMAL3 rose 1.1% to $2,246.50 a tonne, tin CMSN3 increased 1.4% to $17,870 a tonne and zinc CMZN3 edged up 0.9% to $2,720 a tonne.
SHFE aluminium SAFcv1 gained 0.5% to 17,885 yuan a tonne, tin SSNcv1 rose 0.3% to 158,990 yuan a tonne, while zinc SZNcv1 fell 2.1% to 22,595 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 SNIcv1 jumped 4% to 188,310 yuan a tonne. The gains came as Chinese battery giant CATL 300750.SZ jumped on news that it would indirectly own stakes in major cobalt producer CMOC Group Ltd 603993.SS, reinforcing the demand need for battery metals including nickel.
