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METALS-London copper retreats as dollar advances
October 31, 2017 / 2:23 AM / 19 days ago

METALS-London copper retreats as dollar advances

SYDNEY, Oct 31 (Reuters) - London copper returned overnight gains in Asian trading on Tuesday on the back of a stronger U.S. dollar.

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, the new-found strength of the dollar against a basket of currencies encouraged enough profit-taking in less-active Asian trading to drive the metal into negative territory, according to commodities traders.

A stronger dollar can prompt speculators to sell dollar-denominated copper positions and book profits on the currency spread.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was down 0.2 percent to $6,849.50 tonne by 0144 GMT, eroding Monday’s gain.

* The most-traded copper contract on the Shanghai Futures Exchange was mostly flat at 53,560 yuan($8,068.45)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: the dollar index, which tracks the currency against a basket of six major rivals, was up 0.04 percent .

* OTHER METALS ShFE nickel and zinc saw the greatest advances among Chinese metals futures, both contracts up more than 1 percent in step with firmer domestic steel prices

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian stocks were mostly sluggish on Tuesday following weakness on Wall Street, while the dollar sagged following news that investigators probing Russian interference in the 2016 U.S. election had charged President Donald Trump’s former campaign manager.

DATA/EVENT AHEAD (GMT)

0100 China NBS Non-Mfg PMI Oct

0300-0500 Japan BOJ rate decision

0630 France GDP Preliminary Q3

1000 Euro Zone GDP Flash Prelim Q3

1300 U.S. CaseShiller 20 MM SA Aug

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 = 6.6382 Chinese yuan)

Reporting by James Regan; Editing by Sunil Nair

Our Standards:The Thomson Reuters Trust Principles.
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