METALS-Copper hits 3-week high on fund buying, investors await Fed minutes
Copper prices rose on Tuesday as a softer dollar prompted fund buying, while a low auction amount in the first round of a rare stockpile release in top metals consumer China also helped.
Three-month copper on the London Metal Exchange CMCU3 advanced 0.4% to $9,546.50 a tonne by 0255 GMT, having risen as much as 0.6% earlier to $9,569, its highest since June 16.
The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 increased 1.4% to 69,790 yuan ($10,801.90) a tonne. The contract hit its highest since June 15 at 69,970 yuan earlier in the session.
China’s state reserves administration is scheduled to auction 20,000 tonnes of copper, 30,000 tonnes of zinc and 50,000 tonnes of aluminium on July 5-6.
The copper volume being sold is equivalent to only 2.3% of China’s refined output in May.
Meanwhile, an acceleration in U.S. hiring boosted hopes of stronger demand for metals and a sustained recovery in the world’s biggest economy.
Minutes from the U.S. Federal Reserve’s latest policy meeting due out on Wednesday might determine the near-term direction of the dollar as investors look for insight into the thinking behind last month’s hawkish shift in which Fed members projected a start to rate hikes in 2023. USD/
* LME nickel CMNI3 rose 0.6% to $18,515 a tonne, zinc CMZN3 advanced 0.5% to $2,959 a tonne, ShFE nickel SNIcv1 increased 1.1% to 137,940 yuan a tonne and ShFE tin SSNcv1 jumped 2.3% to 218,940 yuan a tonne.
* Most Asian share markets opened a fraction higher, ahead of a key decision by Australia’s central bank on its quantitative easing programme and despite ongoing concerns over the future regulation of China’s powerful technology sector. MKTS/GLOB DATA/EVENTS (GMT)
0600 Germany Industrial Orders MM May
0900 Germany ZEW Economic Sentiment July
0900 Germany ZEW Current Conditions July
1345 US Markit Comp, Svcs Final PMIs June
1400 US ISM N-Mfg PMI June
($1 = 6.4609 yuan)
Source: Reuters (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)