METALS-Base metals gain as Fed leaves rate unchanged

Credit: REUTERS/REGIS DUVIGNAU

BEIJING, Nov 2 (Reuters) - Prices of most base metals climbed on Thursday, as the U.S. Federal Reserve holding interest rates and supply concerns boosted sentiment.

Three-month copper on the London Metal Exchange CMCU3 was up 0.6% at $8,154 per metric ton by 0220 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 gained 0.3% to 67,470 yuan ($9,220.49) per ton.

The Fed on Wednesday held interest rates steady as widely expected, enhancing market confidence on a dovish policy in the future and sending the U.S. dollar lower.

A weaker dollar makes it cheaper to buy the greenback-priced commodity.

Copper prices are expected to mount a modest recovery next year as burgeoning demand from the energy transition offsets global economic weakness and healthy mine supply, a Reuters poll showed. COMMODITYPOLL01

Also weighing on metals supply was production disruption concerns.

Netherlands-based Nyrstar planed to temporarily close two zinc mines in the U.S. state of Tennessee in November-end due to weak prices and the impact of inflation, Reuters reported on Wednesday.

LME zinc CMZN3 gained 0.2% to $18,045 a ton, having touched a one-month high in the previous session, and SHFE zinc SZNcv1 was up 2.6% to a three-week high at 21,515 yuan a ton.

Aluminium smelters in China's southwestern Yunnan province started production cuts this week as the hydropower-dependent region entered dry season.

LME aluminium CMAL3 gained 0.3% at $2,343.50 a ton, tin CMSN3 increased 0.5% to $24,030, lead CMPB3 added 0.5% to $2,113.50, and nickel CMNI3 moved 0.2% to $18,045.

SHFE aluminium SAFcv1 added 0.2% to 19,215 yuan a ton, lead SPBcv1 rose 0.7% to 16,400 yuan, nickel SNIcv1 nudged 0.1% to 141,640 yuan, and tin SSNcv1 was unmoved at 206,170 yuan.

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($1 = 7.3174 Chinese yuan renminbi)

(Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi Aich)

((Siyi.Liu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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