HANOI- Base metals prices rose on Monday as the US dollar eased, making greenback-priced metals cheaper to holders of other currencies, although gains were capped by concerns over the demand outlook.
Three-month copper on the London Metal Exchange (LME) rose 1.4 percent to $9,089.50 per metric ton, while the most-traded January copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.6 percent to 74,380 yuan ($10,268.94) a ton.
The dollar fell as investors assumed the pick for US Treasury secretary would reassure the bond market and pulled yields lower, shaving some of the dollar’s rate advantage.
Despite the rise on Monday, copper prices on both exchanges are set for the second straight monthly loss due to disappointment in the Chinese stimulus released so far and worries that US President-elect Donald Trump will impose tariffs on China and hurt trade flows and economic growth.
Copper inventories in SHFE warehouses have been dipping during China’s peak consumption season, but stockpiles in LME and COMEX warehouses are largely unchanged, reflecting weak demand outside China. LME aluminum rose 1.1 percent to $2,653 a ton, nickel advanced 0.3 percent to $16,025, zinc climbed 0.9 percent to $2,994, lead increased 0.6 percent to $2,033.50, and tin was up 0.7 percent at $29,125.
