METALS-Dollar surge pushes down copper prices

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(Update adds full, London dateline)

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LONDON, Nov 17 (Businesshala) – Copper prices fell for a third day on Wednesday as hopes of a US interest rate hike propelled the dollar to a 16-month high, leaving the metal in the greenback for buyers along with other currencies. Got expensive.

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Benchmark copper was down 1% at $9,462 a tonne at 1213 GMT on the London Metal Exchange (LME).

Prices of the metal used in construction and power operations hit a record high of $10,747.50 in May, but have lost momentum since economic growth slowed.

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The dollar was stable on Wednesday, but strong US economic data over the past week and high inflation had many investors expecting a US rate hike through mid-2222.

Saxo Bank strategist Ole Hansen says this has pulled copper towards its 200-day moving average, which is currently a key technical indicator at $9,408 per tonne.

“If we close below that level, we could see the market reverse to $9,000,” he said, but added that prices are unlikely to drop much as demand will pick up as the world builds infrastructure to electrify. manufactures.

Demand: The world will need to double its copper supply and quadruple its nickel supply over the next 30 years to facilitate a decarbonized world, a BHP executive said.

Spreads: Supply pressure on the LME, which pushed prices up last month, has faded, copper has moved into exchange warehouses and the premium for cash copper on three-month contracts fell from more than $1,100 to $15.50 a tonne. It is done. CMCU0-3MCUSTX-TOTAL

China Coal: Chinese coal prices continue to fall as Chinese mines ramp up production. The energy cost of metal smelters should be lower than cheap coal.

Aluminium: The cost of electricity is most important for aluminum, which uses a lot of electricity in its production. Shanghai aluminum prices have fallen drastically. Aluminum on the LME was up 0.9% at $2,596.50 a tonne, but is still down nearly 20% from last month’s high.

China production: In October, China’s copper production fell 0.3% year-on-year, zinc production fell 9.2% and alumina production fell to a 10-month low, official data show.

Metal prices: LME zinc fell 0.2% to $3,216 a tonne, nickel rose 0.1% to $19,415, lead slipped 1% to $2,283.50 and tin rose 0.6% to $37,870.

Reporting by Peter Hobson Additional reporting by Mai Nguyen in Hanoi Editing by Kirsten Donovan


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