Economic news

METALS-Copper Slips as Fed Hints at Tapering Plan

Sept 23 (Reuters) - London copper prices eased on Thursday, after the U.S. Federal Reserve hinted at plans to taper its stimulus programme that raised worries of slowing recovery in the world’s biggest economy.

Three-month copper on the London Metal Exchange fell 0.3% to $9,257 a tonne by 0553 GMT, while the most-traded October contract on the Shanghai Futures Exchange advanced 0.3% to 68,820 yuan ($10,646.00) a tonne, tracking overnight gains in London.

The Fed said on Wednesday it would likely begin reducing its monthly bond purchases as soon as November and signalled interest rate increases may follow more quickly than expected.

Copper is often used as a gauge of global economic health.

“Taper is getting closer and September (U.S.) employment data has become the focus of attention,” said Huatai Futures in a report, expecting copper to move in a wide fluctuation, with downside risk.

FUNDAMENTALS

* LME lead rose 1.4% to $2,142 a tonne while ShFE aluminium advanced 2.8% to 23,545 yuan a tonne and ShFE tin hit a record 277,800 yuan a tonne on supply worry.

* Yangshan copper premium rose to $108 a tonne, its highest since Aug. 23, indicating rising demand to import the metal into top consumer China, as Chinese bonded warehouse stocks fell to their one-year low of 250,500 tonnes.

* Yangshan copper premium rose to $108 a tonne, its highest since Aug. 23, indicating rising demand to import the metal into top consumer China, as Chinese bonded warehouse stocks fell to their one-year low of 250,500 tonnes.

* The cash premium of LME lead over its three-month contract was last at $11.30 a tonne, flipping from a discount zone in the previous sessions, indicating rising tightness in nearby supplies.

* The cash premium of LME lead over its three-month contract was last at $11.30 a tonne, flipping from a discount zone in the previous sessions, indicating rising tightness in nearby supplies.

* LME cash tin was traded at a premium of $1,334 a tonne against its three-month contract, its highest since Aug. 3, as nearby supply tightened.

* LME cash tin was traded at a premium of $1,334 a tonne against its three-month contract, its highest since Aug. 3, as nearby supply tightened.

* COLUMN-Malaysia deals fresh blow to global copper scrap trade: Andy Home.

* For the top stories in metals and other news, click or

$1 = 6.4644 yuan

Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M. and Rashmi Aich

Source: Reuters


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