BENGALURU- Copper extended gains to a fourth session on Wednesday as the US dollar weakened, while London aluminum held firm after China decided to remove export tax rebates.
Three-month copper on the London Metal Exchange (LME) rose 0.6 percent to $9,143.5 per metric ton, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) gained 0.8 percent to 74,600 yuan ($10,305.15) a ton.
The dollar pulled back after its recent blazing rally, making greenback-priced metals more affordable for other currency holders.
LME aluminum climbed 0.5 percent to $2,657 a ton, rising for a second straight session.
China said on Friday it would cancel a 13 percent export tax refund for aluminum and copper products from Dec. 1. China’s copper product exports are considerable, while the volume of aluminum exports is significantly higher. “The reduction in export subsidies is probably also a measure to slow down the growth in smelting capacity, which has also continued to increase due to rising exports,” Commerzbank said in a note.
