METALS-Most London base metals fall on lack of fresh Chinese stimulus

Credit: REUTERS/Ivan Alvarado

Updates prices, adds quotes

March 5 (Reuters) - Most nonferrous metals prices in London fell on Tuesday, on a firmer dollar and disappointment from the lack of fresh supportive measures in top consumer China.

Three-month copper on the London Metal Exchange (LME) CMCU3 was down 0.4% at $8,505 per metric ton, as of 0654 GMT, while the most-traded April copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 0.1% to 69,050 yuan ($9,592.01) per metric ton.

LME aluminium CMAL3 eased 0.2% to $2,229 a ton, nickel CMNI3 dropped 1.3% to $17,715, zinc CMZN3 edged down 0.2% at $2,443.50, lead CMPB3 declined 0.7% to $2,037.50 and tin SSNcv1 dropped 0.7% to $26,640.

The dollar index .DXY firmed lightly on Tuesday, making greenback-priced metals more expensive to holders of other currencies.

Investors and traders have been awaiting fresh stimulus measures from China's top leaders to boost economic growth and metals consumption, which has been subdued after the Lunar New Year holiday.

So far, Beijing set a widely expected 5% growth target for 2024, dampening risk sentiment across Chinese and other Asian equities markets. The annual gathering of the country's parliament will last until March 11.

"(There are) no new fresh measures that will boost metals demand... I don't have much hope (for such measures)," a metals trader said.

SHFE nickel SNIcv1 fell 0.5% to 136,520 yuan a ton, while tin SSNcv1 edged up 0.1% at 218,750 yuan, lead SPBcv1 was 0.1% higher at 16,000 yuan, aluminium SAFcv1 rose 0.5% to 19,075 yuan and zinc SZNcv1 increased 0.5% to 20,685.

The discount of LME lead cash to the three-month contract CMPB0-3 widened to $15.95 a ton on Monday, the biggest since Jan. 18, as inventories in LME warehouses surged to the highest since May 2017 at 183,100 tons.

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($1 = 7.1987 yuan)

(Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips and Mrigank Dhaniwala)

((mai.nguyen@thomsonreuters.com; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))

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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