METALS-Copper eases on prolonged concerns over US policy crunch
November 3 (Reuters) – Copper prices fell on Thursday as risk sentiment deteriorated and the outlook for metals demand darkened on the prospect of prolonged policy tightening from the U.S. Federal Reserve.
Three-month copper on the London Metal Exchange CMCU3 fell 0.1% to $7,621.50 a tonne at 02:42 GMT, while the most traded copper contract in December on the Shanghai Futures Exchange SCFcv1 slipped 0.1% to 63,500 yuan ($8,695.06) a 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 the height of the rates increase to curb inflation.
The dollar was firmer following Powell’s remarks, making greenback-priced metals more expensive for holders of other currencies.
Tin LME CMSN3 fell 2.1% to $17,625 a tonne, lead CMPB3 fell 0.3% to $1,983 a tonne, while aluminum CMAL3 rose 0.7% to $2,267.50 per tonne.
Tin SHFE SSNicv1 lost 2.4% to 156,270 yuan per tonne, lead SPBcv1 fell 0.5% to 15,105 yuan a ton, while nickel SNIcv1 rose 0.6% to 192,710 yuan per ton and aluminum SAFcv1 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 16,000 tons deficit in August, compared to 80,000 tonnes in July, the International Copper Study Group said.
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($1 = 7.3030 yuan)
(Reporting by Mai Nguyen in Hanoi; editing by Uttaresh.V)
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