February 22, 2018 / 6:26 AM / 4 months ago

METALS-London metals sag on dollar, ShFE weakens on holiday return

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Feb 22 (Reuters) - London metals fell on Thursday
after U.S. policymakers backed the need for more rate rises,
pushing up the dollar and putting pressure on metals as trading
in Shanghai resumed after a week-long break. 
    "I think this sort of consolidation (in metals) on dollar
strength is just short term," said analyst Helen Lau of
brokerage Argonaut Securities in Hong Kong.   
    "The most important thing is overall the fundamentals in
both China and overseas markets are on a stronger footing than
last year ... people will eventually come back to look at the
fundamentals." 
    
    FUNDAMENTALS
    * LME: London Metal Exchange copper fell 1.3 percent
to $7,028 a tonne by 0800 GMT, having ended up 0.4 percent in
the previous session. Support is seen at the 30-day moving
average of $6,826 a tonne. 
    * SHFE: Shanghai Futures Exchange copper pared
early gains of 1 percent to end at 52,750 yuan ($8,300) a tonne,
still up 0.4 percent. ShFE nickel and lead
held small gains while other metals were flat or lower. 
    * ShFE aluminium extended its pre-holiday decline
to its weakest in more than a year as traders priced in easing
raw materials costs and increasing production after China's
winter pollution controls expire next month.
    * DOLLAR: The dollar rose to a one-week high against a
basket of major currencies on Thursday, after minutes of the
Federal Reserve's January meeting showed policymakers were more
confident of the need to keep raising interest rates.
    * COBALT: Apple Inc is talking to major cobalt
producers to secure supplies of the material vital for the
lithium-ion rechargeable batteries that power its mobile phones,
three cobalt industry sources said.
    * COPPER SUPPLY: Southern Copper Corp will invest about $2.5
billion in Peruvian copper project Michiquillay, with production
of 225,000 tonnes of copper per year expected to start in 2015,
the company said in a statement on Wednesday.
    * OTHER METALS: LME nickel and zinc fell
more than 2 percent, while aluminium and lead
shed around 1 percent. Zinc turnover was the highest of all
contracts at nearly 6,000 lots as prices fell through supports. 
    * MARKETS: Asian shares slipped on Thursday as the risk of
faster hikes in U.S interest rates lifted short-term Treasury
yields to the highest in almost a decade and boosted the dollar.
    
    * COMING UP: Germany Ifo business climate Feb at 0900 GMT
    * For the top stories in metals and other news, click       
 or     
        
        PRICES    
 Three month LME copper                        7030.5
 Most active ShFE copper                        52750
 Three month LME aluminium                       2172
 Most active ShFE                               14120
 aluminium                                
 Three month LME zinc                            3461
 Most active ShFE zinc                          26325
 Three month LME lead                          2529.5
 Most active ShFE lead                          19300
 Three month LME nickel                         13460
 Most active ShFE nickel                       102840
 Three month LME tin                            21495
 Most active ShFE tin                          147130
                                                     
 BASE METALS ARBITRAGE                               
 LME/SHFE COPPER            LMESHFCUc3         700.56
 LME/SHFE ALUMINIUM         LMESHFALc3       -1915.57
 LME/SHFE ZINC              LMESHFZNc3         264.02
 LME/SHFE LEAD              LMESHFPBc3        -192.27
 LME/SHFE NICKEL            LMESHFNIc3         1955.4
 
    ($1 = 6.3554 Chinese yuan)

    
 (Reporting by Melanie Burton; editing by Richard Pullin and Tom
Hogue)
  
 
 
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