Posted on 21 Sep 2022
Base metals broadly rose on Tuesday, supported by clues that top consumer China will further ease its COVID-19 restrictions, although trading volumes were tepid as markets weighed the risk of monetary tightening by the U.S. Federal Reserve.
Three-month copper on the London Metal Exchange CMCU3 advanced 0.8% to $7,814 a tonne by 0559 GMT, and the most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 increased 0.2% to 62,720 yuan ($8,945.05) a tonne.
LME zinc CMZN3 rose 0.5% to $3,156.50 a tonne, aluminium CMAL3 was up 0.5% at $2,262.50 a tonne and ShFE nickel SNIcv1 climbed 1.4% to 196,000 yuan a tonne, while ShFE aluminium SAFcv1 fell 0.5% to 18,765 yuan a tonne.
China, the world’s biggest consumer of metals, is starting to ease some strict COVID-19 regulations that had hurt economic growth and metals demand in the country.
Local authorities of the southwestern Chinese city of Chengdu announced plans to resume production and life “in an orderly manner” from Monday following more than two weeks of lockdowns and other strict curbs.
Hong Kong, which takes its cues from China’s COVID-19 policy, is also expected to move toward an orderly reopening in a bid to keep the city connected with the rest of the world.
“There’s more pressure on China to relax its zero-COVID policies, as more angst is arising amongst the general public,” a trader said, adding that market was quiet ahead of the Fed meeting on interest rates during Sept. 20-21.
The U.S. central bank is expected to hike rates aggressively in an effort to curb inflation, which in turn would strengthen the dollar and make greenback-priced metals more expensive to holders of other currencies.
Source:Reuters
