Copper prices gained on Thursday, helped by a weaker US dollar after the Federal Reserve’s November meeting minutes showed interest rate hikes may slow soon.
Three-month copper on the London Metal Exchange was up 0.8% at $8,072.50 a tonne by 0201 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.2% to 65,060 yuan ($9,111.92) a tonne.
A “substantial majority” of policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes, according to the Fed minutes from its latest meeting.
The dollar slipped to a one-week low against its rivals, making metals less expensive for non-dollar holders to buy the greenback-priced commodity.
Risk sentiment in wider financial markets also remained upbeat on prospect of the Fed slowing the pace of interest rate hikes.
Chile state miner Codelco, the world’s top producer of copper, on Wednesday disputed reports it intended to slash shipments of the red metal to China next year amid worries over production.
Meanwhile, analysts expect China copper demand to rise strongly in 2023, helped by production of electric vehicles and rising investment in renewable power projects.
China reported 31,656 new COVID-19 infections on Nov. 23, up from 29,157 new cases a day earlier.
China will use timely cuts in banks’ reserve requirement ratio (RRR), alongside other monetary policy tools, to keep liquidity reasonably ample, state media on Wednesday quoted a cabinet meeting as saying.
Survey showed Japan’s manufacturing activity contracted at the fastest pace in two years in November as demand worsened due to strong inflationary pressures
Among other metals, LME aluminum gained 0.6% to $2,412 a tonne, lead rose 0.7% to $2,123, tin climbed 1% to $22,250 and zinc rose 1.3% to $2,944.
SHFE nickel eased 0.3% to 200,640 yuan a tonne, lead rose 0.3% to 15,740 yuan, tin rose 1% to 184,300 yuan, zinc gained 0.5% to 23,780 yuan and aluminum rose 0.6% to 19,060 yuan.
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