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Copper Rebounds on Subdued Dollar; Set for 1st Weekly Loss

Copper prices on Friday rebounded from a one-month low hit in the previous session, as a weaker U.S. dollar boosted the appeal for greenback-priced metals, while hopes of more stimulus in the United States also aided the sentiment.

The dollar dipped from a two-month peak, but was on track for its biggest weekly gains in near six months as doubts persisted on whether Washington can overcome divisions to agree on a stimulus package.

Three-month copper on the London Metal Exchange rose 0.8% to $6,578.50 a tonne by 0432 GMT. However, it was on track for its first weekly loss since early August.

The most-traded November copper contract on the Shanghai Futures Exchange ended the morning session up 0.1% at 50,900 yuan ($7,466.63) a tonne.

Democrats in the U.S. House of Representatives are working on a $2.2 trillion coronavirus stimulus package that could be voted on next week, a key lawmaker said on Thursday.

“The constant calls from Fed officials to provide additional fiscal support to the economy seemed to (have) jolted lawmakers into action,” ANZ analysts said in a note.

“But it is difficult to see a material package being agreed given election-related tensions in Washington,” said James Knightley, chief international economist at ING.


* Global copper smelting activity recovered in August, mainly due to a jump in activity in North America, data from satellite surveillance of copper plants showed.

* Tin prices are due to extend their rally next year as China stocks up on the metal due to a recovery in demand for electronic goods.

* On the LME, aluminium gained 0.5%, zinc climbed 1.4%, nickel added 1.4%, lead advanced 0.5%, and tin jumped 1.6%.

* In Shanghai, aluminium rose 0.4%, zinc slipped 0.4%, nickel gained 0.7%, lead fell 1.2%, and tin slumped 1%.

Reporting by Enrico Dela Cruz in Manila; Editing by Devika Syamnath and Rashmi Aich

Source: Reuters

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