Copper hovers near 3-year top as China growth supports
Reuters|
Updated: Oct 17, 2017, 08.51 AM IST
SYDNEY: London copper paused for breath near three-year highs on Tuesday as it faced headwinds from a stronger dollar, but renewed optimism over China's economic outlook has lent support to prices.
FUNDAMENTALS
* LME COPPER: London Metal Exchange copper was little changed at $7,128 a tonne by 0125 GMT, following its biggest daily jump in eight months at 3.7 per cent on Monday. Prices struck $7,177 a tonne in the previous session, the highest since July 2014.
* SHFE COPPER: Shanghai Futures Exchange copper advanced 2.6 per cent to 55,460 yuan ($8,418) a tonne. It earlier hit its highest since Feb 2013 at 55,910.
* SCRAP: The market was keeping an eye on reports that China is enforcing some restrictions on copper imports, including scrap, traders said.
* CHINA ECONOMY: China's producer profits and copper imports have picked up, recent data showed, even as China's economic growth is expected to ease to 6.8 per cent in the third quarter from 6.9 per cent in the previous quarter due to a cooling property sector and the government's battle against debt risks.
* RIO TINTO: Rio Tinto cut its mined copper production guidance for 2017 to 460,000-480,000 tonnes from 500,000-550,000 tonnes owing to a delayed ramp-up at its Chilean Escondida mine.
* ZINC: SHFE zinc slipped by 1 per cent but was still near its highest in 9-1/2 years, having peaked at 26,630 on Oct. 9. LME zinc was also within reach of decade highs at $3,308.75, with supply constrained by China's crackdown on polluters in heavy industry.
* ZINC SPREADS SLACKEN: The premium for cash zinc has slumped in recent days, suggesting that the metal may be delivered against short positions as the main October contract expires this week. LME cash is at a $35 premium against the benchmark, down from $91 on Oct. 12.
* STOCKS: LME zinc stocks have already climbed about 20,000 tonnes since Oct. 5 to the highest since mid-July.
* USD: Headwinds came from the dollar, which was supported by a rise in Treasury yields following a report that U.S. President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve.
* JAPAN MANUFACTURING: Confidence among Japanese manufacturers rebounded in October to match a peak last seen in mid-2007, a Reuters poll found, further evidence that the economic recovery is gathering momentum helped by a weak yen and strong overseas demand.
FUNDAMENTALS
* LME COPPER: London Metal Exchange copper was little changed at $7,128 a tonne by 0125 GMT, following its biggest daily jump in eight months at 3.7 per cent on Monday. Prices struck $7,177 a tonne in the previous session, the highest since July 2014.
* SHFE COPPER: Shanghai Futures Exchange copper advanced 2.6 per cent to 55,460 yuan ($8,418) a tonne. It earlier hit its highest since Feb 2013 at 55,910.
* SCRAP: The market was keeping an eye on reports that China is enforcing some restrictions on copper imports, including scrap, traders said.
* CHINA ECONOMY: China's producer profits and copper imports have picked up, recent data showed, even as China's economic growth is expected to ease to 6.8 per cent in the third quarter from 6.9 per cent in the previous quarter due to a cooling property sector and the government's battle against debt risks.
* RIO TINTO: Rio Tinto cut its mined copper production guidance for 2017 to 460,000-480,000 tonnes from 500,000-550,000 tonnes owing to a delayed ramp-up at its Chilean Escondida mine.
* ZINC: SHFE zinc slipped by 1 per cent but was still near its highest in 9-1/2 years, having peaked at 26,630 on Oct. 9. LME zinc was also within reach of decade highs at $3,308.75, with supply constrained by China's crackdown on polluters in heavy industry.
* ZINC SPREADS SLACKEN: The premium for cash zinc has slumped in recent days, suggesting that the metal may be delivered against short positions as the main October contract expires this week. LME cash is at a $35 premium against the benchmark, down from $91 on Oct. 12.
* STOCKS: LME zinc stocks have already climbed about 20,000 tonnes since Oct. 5 to the highest since mid-July.
* USD: Headwinds came from the dollar, which was supported by a rise in Treasury yields following a report that U.S. President Donald Trump was favouring a policy hawk as the next head of the Federal Reserve.
* JAPAN MANUFACTURING: Confidence among Japanese manufacturers rebounded in October to match a peak last seen in mid-2007, a Reuters poll found, further evidence that the economic recovery is gathering momentum helped by a weak yen and strong overseas demand.
