Firm dollar weighs on Copper
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Copper prices slipped on Tuesday as a firmer dollar weighed on sentiment, but bargain hunters and supply threats are likely to limit losses.
Copper for delivery in three months on the London Metal Exchange at 1011 GMT was at $7,915/7,925 a tonne from $7,956 at the close on Monday, when it hit $,885, the lowest since September 24.
The dollar was firm against the euro, drawing support from a more positive economic outlook for the US and a growing view that the US Federal Reserve may leave interest rates on hold later this month.
EXPLOSIVE
Traders expect subdued activity this week because many producers, consumers and traders are in London for LME week to discuss metals markets and future markets.
“Low volumes could mean more volatility on the scale of on Monday,” a trader on the floor of the LME said/ “Monday was quite explosive.”
“We still expect additional inventory growth (in nickel) and see little fundamental justification at present for prices above $30,000,” Comerzbank said in a note.
Stocks of nickel in LME warehouses have risen nearly 900 per cent since March to around 35,000 tonnes – about eight days global consumption.
Nickel, a key input for stainless steel, was at $30,350 / 30,400 a tonne from $30,150 on Monday.
Aluminium was at $2,405/2,410 a tonne from $2,393 on Wednesday, lead was at $3,710/3,730 from $3,675, zinc was at $2,945 / 2,965 from $2,950 and tin was at $15,500/15,575 from $15,600 on Monday.
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Source : Business Line |
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