METALS-Copper rises on weakening dollar as risk appetite improves
By Zandi Shabalala
LONDON, July 22 (Reuters) - Copper prices gained on Thursday on a softer dollar, dwindling inventories and a revived appetite for assets considered riskier.
Benchmark copper on the London Metal Exchange (LME) CMCU3 rose 0.6% to $9,409 a tonne in official trading rings.
"We have micro drivers which are still supporting the market due to the tightening of supply," said Gianclaudio Torlizzi, partner at consultancy T-Commodity.
He said the spread of the Delta variant could see the U.S. Federal Reserve back off tightening monetary policy too quickly in a bid to support the world's largest economy.
"The market is still waiting for more signs of monetary fiscal policy but my guess is that copper will break on the upside as we are in a bull market and every dip is being bought."
DOLLAR: The safe-harbour dollar was on the back foot, after pulling back from multi-month highs as strong earnings lifted Wall Street stocks, making greenback-priced metals cheaper to holders of other currencies.
INVENTORIES: On-warrant LME stocks of copper MCUSTX-TOTAL, those not earmarked for delivery, fell to 210,775 tonnes.
PREMIUMS: The Yangshan copper premium SMM-CUYP-CN rose to $41 a tonne, its highest since May 7, indicating strengthening demand for imported metal into China.
FORCE MAJEURE: Lead CMPB3 hit a three-year high of $2,374 a tonne after German lead producer Berzelius Stolberg declared force majeure on metal shipments from its Stolberg smelter due to floods.
In official rings, it was up 1.3% to $2,367.50.
The premium of LME cash lead over the three-month contract CMPB0-3 expanded to $17.50 a tonne, its highest since July 2, indicating tightening nearby supplies.
OTHER METALS: Aluminium CMAL3 rose 0.4% at $2,462.50 a tonne, zinc CMZN3 gained 0.4% to $2,940, tin CMSN3 added 1.1% to $33,245 after hitting a record high, and nickel CMNI3 was up 1.5% at $18,867.
(Reporting by Zandi Shabalala; editing by David Evans)
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