METALS-Copper nears $10,000/T level as dollar weakens

London copper prices edged towards an important psychological level of $10,000 on Thursday, as a weaker dollar made the greenback-priced metal cheaper to holders of other currencies.

Three-month copper on the London Metal Exchange CMCU3 rose 0.9% to $9,963.50 a tonne by 0210 GMT, having risen to as high as $9,997 a tonne earlier in the session, only $3 off the key $10,000 resistance level, which was last hit in February 2011.

The dollar was on the defensive near a nine-week low, as a decidedly dovish outlook from the U.S. Federal Reserve gave a green light for the global reflation trade.

The most-traded June copper contract on the Shanghai Futures Exchange SCFcv1 hit 72,860 yuan ($11,265.21) a tonne, its highest since February 2011.

FUNDAMENTALS

* Goldman Sachs forecast copper would average $9,675 a tonne in 2021, $11,875 a tonne in 2022 and $12,000 a tonne in 2023.

* However, Yangshan copper premium SMM-CUYP-CN fell to $43 a tonne, its lowest since April 2017, indicating weakening demand from top consumer China as prices have leaped 24% this year.

* Global nickel demand is seen rising 11.7% year-on-year to 2.67 million tonnes in 2021, while output is expected to rise 9.2% within the same period to 2.72 million tonnes, the International Nickel Study Group said on Wednesday.

* ShFE nickel SNIcv1 jumped 2.6% to 129,690 yuan a tonne while ShFE tin SSNcv1 climbed 3.2% to 192,100 yuan a tonne. MARKETS NEWS

* Asian shares rose in early trade after the U.S. Federal Reserve said it was too early to consider rolling back emergency support for the economy, and as U.S. President Joe Biden prepared to unveil a $1.8 trillion stimulus package. MKTS/GLOB DATA/EVENTS (GMT)
Source: Reuters (Reporting by Mai Nguyen; Editing by Rashmi Aich)