Metals

METALS-Copper holds around 6-1/2-month highs on demand cheer, subdued dollar

BEIJING, Jan 11 (Reuters)Copper prices on Wednesday hovered near 6-1/2-month highs touched in the previous session, helped by hopes of better demand for the metal after top consumer China reopened its economy, with a shaky dollar also lending support.

Three-month copper on the London Metal Exchange CMCU3 gained 0.2% to $8,926 a tonne by 0200 GMT, the highest since June 22.

The most-traded February copper contract on the Shanghai Futures Exchange SCFcv1 was up 1.5% at 67,530 yuan a tonne, an eight-week high.

A raft of policy measures from Beijing to revive its economy and its ailing property sector have boosted investors’ sentiment, although spot demand for the metal has been limited ahead of the Lunar New Year starting from Jan. 21.

Aiding prices further, the U.S. dollar index =USD hovered around a seven-month low, making it more attractive for non-dollar holders to buy the greenback-priced commodity.

Global investors now eyed U.S. inflation data due later this week for more clues on interest rate hikes prospects. Some traders expect a less aggressive Federal Reserve stance.

Among other metals, LME aluminium CMAL3 dipped 0.4% to $2,455 a tonne, zinc CMZN3 climbed 0.4% to $3,173.50, lead CMPB3 fell 0.9% to $2,180 and tin CMSN3 added 0.2% to $25,920.

SHFE lead SPBcv1 declined 0.8% to 15,430 yuan a tonne, zinc SZNcv1 dipped 0.2% to 23,745 yuan, while tin SSNcv1 was up 1.3% at 207,890 yuan a tonne. Aluminium SAFcv1 rose 0.4% to 18,225 yuan.

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(Reporting by Siyi Liu and Dominique Patton; editing by Uttaresh.V)

((Siyi.Liu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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