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METALS-London copper gains as dollar slips
October 31, 2017 / 7:44 AM / 23 days ago

METALS-London copper gains as dollar slips

(Releads to show LME copper up)

By James Regan

SYDNEY, Oct 31 (Reuters) - London copper turned positive in late Asian trading on Tuesday as the U.S. dollar weakened.

Copper started the week by pulling away from the previous session’s two-week low as a retreat in the dollar tempted buyers back to the metal.

However, a start to Tuesday’s market activity saw the dollar strengthen against a basket of currencies, which encouraged enough profit-taking in less-active Asian trading to drive the metal into negative territory.

A stronger dollar can prompt speculators to sell dollar-denominated copper positions and book profits on the currency spread, while a weaker currency attracts buyers.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.3 percent to $6,892.75 tonne by 0727 GMT, building on Monday’s gains.

* The most-traded copper contract on the Shanghai Futures Exchange closed 0.58 percent higher at 53,820 yuan ($8,118.26) a tonne.

* CODELCO: The world’s biggest copper miner, Codelco [RIC:RIC:COBRE.UL], has raised its 2018 physical copper premium to European buyers to $88 a tonne from the $80 to $85 a tonne range this year, copper industry sources said.

* GLENCORE CUTS: Glencore cut its output forecast for core commodities including zinc, but raised its marketing division’s full-year earnings before interest and tax (EBIT) to between $2.6 billion and $2.8 billion, reflecting higher raw materials prices.

* CHINA STRUGGLES: Factories in China’s industrial heartland making everything from steel sheet to tofu and ceramics are struggling with soaring costs or facing closure as they wait for authorities to approve new gas-powered boilers, five industry executives told Reuters.

* DOLLAR WEAKER: the dollar index, which tracks the currency against a basket of six major rivals, was down 0.01 percent .

* OTHER METALS: ShFE nickel and zinc saw the greatest advances among Chinese metals futures, up 2.8 percent and 1.8 percent respectively in step with firmer domestic steel prices.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.6295 Chinese yuan)

Reporting by James Regan; Editing by Sunil Nair

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