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By Mai Nguyen
Oct 25 (Reuters) – Copper prices in London fell on Tuesday as a weaker yuan against the dollar made greenback-priced assets more expensive to holders of the currency in China, the world’s biggest metals consuming market.
Three-month copper on the London Metal Exchange CMCU3 fell 0.2% to $7,541 a tonne by 0501 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.5% to 63,040 yuan ($8,628.52) a tonne.
“It’s macro and currency noise despite the physical market. A weaker yuan means a stronger dollar, meaning there’s pressure on dollar-based commodities. They’re more expensive to buy relatively,” said analyst Zenon Ho at broker Marex.
The Chinese central bank set the lowest mid-point since 2008, causing China’s onshore yuan to slid to a near 15-year low and the offshore yuan weakened to a record low. CNY/
LME aluminium CMAL3 edged up 0.6% to $2,189 a tonne, zinc CMZN3 edged up 0.5% at $2,974 a tonne and tin CMSN3 rose 0.8% to $18,600 a tonne.
SHFE aluminium SAFcv1 fell 0.5% to 18,495 yuan a tonne, nickel SNIcv1 climbed 1.6% to 188,840 yuan a tonne and tin SSNcv1 advanced 1.2% to 166,320 yuan a tonne.
The premium of LME cash copper over the three-month contract CMCU0-3 rose to $133 a tonne on Monday, the highest since November 2021, indicating tightness of immediately available supply.
Global refined lead and zinc markets are likely be in a deficit in both 2022 and 2023, the International Lead and Zinc Study Group said.
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($1 = 7.3060 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Shailesh Kuber)
((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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