Copper prices in London increased slightly, nearing $10,000, following reports of China’s plans to expand its strategic metal reserves, despite limited details affecting market impact. The U.S. dollar’s strength also influenced the pricing of metals.
On Friday, copper prices in London saw a slight increase, approaching the key psychological threshold of $10,000. This uptick follows reports indicating that China intends to augment its strategic reserves of vital industrial metals, including cobalt, copper, nickel, and lithium, for this year. The National Food and Strategic Reserves Administration, responsible for managing state commodity stockpiles, has initiated price inquiries and bidding for these metals, according to a Bloomberg News report, although specifics regarding volumes and timelines remain undisclosed.
As of 0303 GMT, the benchmark three-month copper price on the London Metals Exchange (LME) increased by 0.3%, reaching $9,970 per metric ton. A trader commented, “The strategic buying news does not significantly influence metals prices today due to the lack of details.” Meanwhile, the U.S. dollar strengthened, benefitting from the Federal Reserve’s signals indicating no immediate plans to lower interest rates.
The dollar index (DXY) recorded a rise of 0.03, reaching 103.82 as of 0238 GMT, following an increase of 0.36% on Thursday. A robust U.S. dollar elevates the cost of dollar-denominated metals for purchasers using alternative currencies. Concurrently, other metals exhibited varying price movements; LME aluminum increased by 0.3% to $2,666 per ton, lead rose by 0.1% to $2,057.5, zinc climbed 0.5% to $2,932, while tin decreased by 0.1% to $35,310, and nickel decreased by 2.0% to $16,240 per ton.
In the Shanghai Futures Exchange (SHFE), copper prices rose by 0.2% to 81,540 yuan ($11,252.64) per ton. SHFE aluminum remained steady at 20,845 yuan per ton, zinc gained 0.6% to reach 23,895 yuan, lead fell 0.5% to 17,590 yuan, while nickel experienced a slight decrease of 0.3% to 129,890 yuan. Conversely, tin increased by 1.0% to 281,620 yuan within the same exchange.
In summary, copper prices in London experienced a modest rise due to China’s plans for increasing its stockpiles of key industrial metals. While price increases were noted, the lack of specific details limited market reactions. Additionally, the strengthening U.S. dollar impacted the pricing dynamics for these metals. Overall, fluctuations in various metal prices were observed across different markets, reflecting broader economic conditions and currency valuations.
Original Source: www.tradingview.com
