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Copper lifts on weak $US, iron ore extends rally
2017-11-27

The price of copper climbed above $US7000 a tonne and towards a one-month high on Friday, helped by a weaker US dollar and shrinking supplies, though concerns over demand from top consumer China capped gains.

 

The US dollar was at its lowest level since late September against a currency basket, still under pressure after the minutes from the latest US Federal Reserve policy meeting highlighted concern among some board members over persistently low inflation.

 

A weak US currency makes dollar-priced metals cheaper for non-US investors.

 

Concern over China, which consumes nearly half the world's copper, centred on fresh economic data this week and Thursday's heavy equities sell-off, though its stock markets steadied on Friday.

 

Data this week showed China's economy cooled in October, with industrial output, fixed-asset investment and retail sales missing expectations as the government extended a crackdown on debt risks and factory pollution.

 

Eugen Weinberg, head of commodities research at Commerzbank, says that risk-on sentiment has been a feature of the copper market for quite some time, but he expects a price correction before too long.

 

"We think prices are likely to correct from current levels because there are signs of slowing demand growth in China and most of the positive news seems to be reflected in the price."

 

Three-month copper on the London Metal Exchange ended up 0.6 per cent at $US7002 a tonne, having touched $US7015, its highest since November 1.

 

Inventories in LME-registered warehouses continued to decline, falling by 5475 tonnes to 213,600 tonnes. Stocks have fallen 30 per cent since mid-September.

 

Workers at BHP Billiton's Escondida copper mine in Chile ended a 24-hour strike on Friday but could down tools again next week over the company's planned layoffs, their union said.

 

Chinese steel prices rose 4 per cent this week, supporting prices of steelmaking ingredients nickel and zinc, with strong profit margins encouraging mills to boost output despite official restrictions on sintering to cut pollution this winter.

 

The spot price of iron ore extended its month-long rally, edging up another 25 US cents to $US67.94 a tonne, Metal Bulletin reported.

 

Chinese iron ore futures touched a 10-week high on the last trading day of the week, providing further support to spot iron ore prices, which hit their strongest since September on Thursday.

 

"With steel futures in China continuing to rise, physical iron ore traders appear to be happy to chase prices higher for the moment," ANZ analysts said in a note.

 

 
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2024-3-27
Item
SHFE
Change
Cu
285090
-1305
Al
199757
-6660
Zn
121873
+2289
Item
LME
Change
Cu
113100
-4300
Al
556525
+750
Zn
263550
-2450
Ni
76836
-240
2023-5-15
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1 EUR=
7.8800
Inverse:
0.12690
1 GBP=
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Inverse:
0.11578
1 AUD=
5.2589
Inverse:
0.19015
   
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