METALS-Firmer dollar drags down industrial metals

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(Across updates, London adds dateline)

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LONDON, Nov 16 (Businesshala) – Industrial metals prices fell on Tuesday as the dollar strengthened ahead of US retail sales data and positive sentiment from a virtual meeting between leaders of the world’s largest economies.

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Closely watched talks between Chinese President Xi Jinping and US President Joe Biden yielded no immediate results, but took on a positive tone and were seen as an opportunity to improve relations.

The dollar index climbed to a 16-month high, making the price of copper and other metals in the US greenback less attractive to global buyers.

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“(The talks between the US and China) are positive, we saw what happened with the trade dispute in 2019 and last year: macros hurt,” independent analyst Robin Bhar said. ,

Benchmark copper was down 0.2% to $9,653 a tonne by 1220 GMT on the London Metal Exchange.

Investors await US retail sales data later on Tuesday, which could also affect the outlook for interest rates.

Outlook: Capital Economics said copper prices are expected to decline as we see an uptick in mine supply and slowing demand in 2022 mainly the Chinese construction sector, the largest end user for the metal Is.

Inventory: Inventory of on-warrant copper in LME-registered warehouses is at its all-time high at 53,175 tonnes in almost a month. MCUSTX-TOTAL

Spread: LME cash copper premium for a three-month contract CMCU0-3 The metal has fallen from around $1,103.50 a month ago to $32.50, pointing to easing concerns about near-availability of the metal.

Aluminium: Falling thermal coal prices led to a fall in prices of the lighter-weight metal, lowering production costs for smelters in top producer China, which are powered by fossil fuels.

LME aluminum fell 1.2% to $2,625 a tonne and is down about 18% in the past month.

Coal production: China said it would continue to increase its supply of coal as part of efforts to reduce prices and increase power generation capacity.

Other metals: Zinc was down 0.3% at $3,207, lead was down 0.3% at $2,320, tin was flat at $37,500, while nickel was down 0.2% at $19,565. (Reporting by Zandi Shabalala; Editing by Ramakrishnan M)


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