METALS-Copper prices rise in volatile market


By Polina Devitt

LONDON, March 20 (Reuters) - Copper prices rose in volatile trade on Monday, supported by a weaker dollar and signs of improving demand from top consumer China.

Benchmark copper CMCU3 on the London Metal Exchange (LME) was up 1% at $8,665.0 a tonne by 1051 GMT, having fallen by 3.2% last week.

Banking stocks and bonds plunged on Monday as the hit to investors from UBS Group's UBSG.S state-backed takeover of Credit Suisse CSGN.S fanned concern over the health of the global banking industry.

"The market is trying to absorb what it all means for the metals sector," said WisdomTree commodity strategist Nitesh Shah.

"Metals markets are very sensitive for macroeconomic trends, and everything that happened in the banking sector could cause a slowdown in economic activity."

Major central banks, faced with the risk of a fast-moving loss of confidence in the stability of the financial system, moved on Sunday to bolster the flow of cash around the world.

The U.S. dollar index =USD fell on Monday, making copper more attractive to buyers holding other currencies.

In China, the world's largest consumer of the metal widely used in electrical wiring and construction, the Yangshan copper premium SMM-CUYP-CN rose to its highest since December, indicating improving appetite for imported copper.

SHFE copper inventories CU-STX-SGH fell for a third straight week to 182,341 tonnes, their lowest since Jan. 20.

LME aluminium CMAL3 was up 0.1% at $2,277 a tonne. China's aluminium imports in the first two months of 2023 rose 11.3% year on year to 374,321 tonnes as buyers anticipated improving demand for the metal.

Zinc CMZN3 rose by 0.1% to $2,896.5 a tonne, nickel CMNI3 lost 0.7% to $23,210, lead CMPB3 was flat at $2,089 and tin CMSN3 gained 0.2% to $22,550.

For the top stories in metals and other news, click TOP/MTL or MET/L

(Reporting by Polina Devitt Additional reporting by Mai Nguyen in Hanoi Editing by David Goodman )


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

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for Smart Investing to get the latest news, strategies and tips to help you invest smarter.