BEIJING: Investors weighed improved demand prospects from China’s top consumer and supply challenges against expectations of additional US Federal Reserve rate hikes. As a result, London copper prices were on track for a slight weekly gain.
After recovering from a five-week low on Thursday, three-month copper on the London Metal Exchange fell 0.5 percent to $8,976.50 per tonne at 03:53 GMT.
On Thursday, stronger-than-expected producer prices and lower jobless claims suggested that the Fed would have to keep interest rates higher for some time. As a result, the dollar maintained its gains against a basket of currencies.
This week, a slowdown in the accumulation of metals stocks provided some support to the market, raising hopes for a recovery in Chinese demand.
According to a memo sent to employees and seen by Reuters, First Quantum Minerals Ltd. has warned employees that it may have to shut down operations in Panama if the government does not allow its copper exports to resume by next week.
A note from ANZ Research stated that worries about the Fed taking a more hawkish stance were dispelled by improved fundamentals.
On the Shanghai Futures Exchange, the most traded March copper contract rose 1.1% to $10,039.26 per tonne.
Zinc rose 0.7 percent to $3,023.50, tin fell 1.1 percent to $26,715, and lead rose 0.9 percent to $2,048 on the LME.
Tin increased by 0.5 percent to 213,140 yuan per tonne, nickel increased by 0.4 percent to 205,000 yuan per tonne, and lead decreased by 0.2 percent to 15,140 yuan per tonne in SHFE.
