Tuesday, September 27

Shanghai base metals rise; caution over Fed’s rate-hike path, China COVID curbs

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BEIJING — Shanghai’s base metals ticked up on Monday, but concerns about US Federal Reserve’s interest rate hike path and persisting COVID-19 curbs in China weighed on sentiment.

The most-traded October copper contract on the Shanghai Futures Exchange edged up 0.1% at 59,920 yuan ($8,657.21) a tonne by 0201 GMT, after posting a weekly loss on Friday.

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ShFE aluminum rose 1.8% to 18,315 yuan a tonne, tin was up 1.3% to 175,550 yuan a tonne and nickel jumped 4.4% to 167,810 yuan a tonne, reversing the downtrend registered the week earlier.

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The jobs data showed US employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% could ease pressure on the Fed to deliver a third 75-basis-point interest rate hike this month.

China’s key commodity exchanges announced on Friday a wider range of products open for foreign participation, copper and aluminum on the ShFE are included.

Meanwhile, however, metals demand outlook was clouded by persisting COVID curbs in China, the world’s biggest metals consumer.

China’s southern tech hub Shenzhen started tiered anti-coronavirus restriction measures from Monday after a weekend lockdown, while the metropolis Chengdu extended its COVID-19 lockdown that started last Thursday.

Three-month copper on the London Metal Exchange lost 0.9% to $7,564 a tonne.

LME aluminum climbed 0.5% at $2,307 a tonne, zinc gained 0.8% to $3,160 a tonne, while tin lost 1.8% to $20,765 a tonne.

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($1 = 6.9214 yuan) (Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi Aich)


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