BENGALURU- Prices of base metals rose on Thursday as the dollar retreated, while investors looked for any developments on the latest trade war between the United States and top metals consumer China.
The most-active copper contract on the Shanghai Futures Exchange gained 1.5 percent to 76,420 yuan ($10,503.02) a metric ton. Three-month copper on the London Metal Exchange (LME) rose 1 percent to $9,336.5 a ton.
The dollar index hovered near a one-week low. A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies.
Earlier this week, China imposed tit-for-tat tariffs on some US imports, escalating the trade tension between the world’s two top economies, while President Donald Trump gave temporary tariff exemptions to Mexico and Canada.
Attention will also be on China to see if the country unveils more stimulus in its National People’s Congress meeting in March, given the tariff war and concerns about slow demand.
“Investors appeared to take the rising trade tensions in their stride, with market activity relatively subdued. Most will be waiting for any sign of a rebound in demand following the holidays,” said Daniel Hynes, senior commodity strategist and ANZ bank.
LME aluminum firmed 0.4 percent to $2,626.5 a ton, zinc was up 1 percent at $2,807, tin added 0.8 percent to $31,050, lead climbed 0.5 percent to $2,012, and nickel rose 0.9 percent to $15,670.
SHFE aluminum gained 0.1 percent to 20,285 yuan a ton, nickel climbed 2.1 percent to 125,740 yuan, zinc firmed 0.1 percent to 23,425 yuan, lead gained 0.9 percent to 17,155 yuan and tin advanced 2.4 percent to 259,160 yuan.
