Copper easing on prolonged concerns over US policy tightening
Nov 3 (Reuters) – Copper prices fell on Thursday as risk sentiment deteriorated and the outlook for demand for the metals dimmed on the prospect of prolonged Reserve policy tightening US Federal.
Three-month copper on the London Metal Exchange fell 0.1% to $7,621.50 a tonne at 0242 GMT, while December’s most-traded copper contract on the Shanghai Futures Exchange slid 0, 1% to 63,500 yuan ($8,695.06) per ton.
The Fed raised interest rates by three-quarters of a percentage point on Wednesday, and Chairman Jerome Powell said the central bank was still undecided about how high rates should rise to curb inflation.
The dollar was firmer after Powell’s remarks, making greenback-priced metals more expensive for holders of other currencies.
LME tin fell 2.1% to $17,625 a tonne, lead 0.3% to $1,983 a tonne, while aluminum rose 0.7% to $2,267.50 the ton.
Tin SHFE fell 2.4% to 156,270 yuan per ton, lead fell 0.5% to 15,105 yuan per ton, while nickel rose 0.6% to 192,710 yuan per ton. and aluminum rose 1.6% to 18,150 yuan per ton.
The drop in metal prices was cushioned by hopes of an easing of COVID-19 restrictions in China, the largest consumer, which could boost economic growth and demand for metals.
Meanwhile, the global refined copper market posted a deficit of 16,000 tonnes in August, down from 80,000 tonnes in July, the International Copper Study Group said.
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1400 US ISM N-Mfg PMI Oct ($1 = 7.3030 yuan) (Report by Mai Nguyen in Hanoi; edited by Uttaresh.V)