Prices of nonferrous metals rose on Tuesday as a weaker dollar made greenback-priced metals cheaper to holders of other currencies.
The dollar weakened after US Federal Reserve officials signaled the central bank was nearing the end of its tightening cycle.
Several Fed officials said on Monday the central bank would likely need to raise interest rates further to bring down still-high inflation, but the end to its current monetary policy tightening cycle is getting close.
Three-month copper on the London Metal Exchange rose 0.4 percent to $8,409.50 per metric ton, while the most-traded August copper contract on the Shanghai Futures Exchange increased 0.3 percent to 68,050 yuan ($9,443.52) per metric ton.
LME aluminum rose 0.8 percent to $2,165 per metric ton, zinc advanced 1.2 percent to $2,381.50, lead edged up 0.5 percent at $2,072.50, nickel edged up 0.2 percent at $21,050 and tin shed 1.1 percent to $28,250.
SHFE aluminum rose 0.8 percent to 18,100 yuan per metric ton, nickel increased 1.1 percent to 163,810 yuan, zinc climbed 1.2 percent to 20,180 yuan, lead 0.7 percent to 15,575 yuan while tin was almost flat at 231,040 yuan.
However, the price rally was capped by weak economic data from top metals consumer China, and in the absence of a targeted Chinese stimulus package that would benefit the consumption of metals.
“We expect prices to remain highly volatile in the coming months as movements in the US dollar affect copper prices, along with investor sentiment towards China’s manufacturing and construction sectors,” said research firm BMI, a unit of Fitch Solutions. – Reuters
