METALS-Base metals up on weaker dollar, demand woes cap gains

BEIJING, April 13 (Reuters) – Prices of most base metals
rose on Thursday as a shaky U.S. dollar made it more attractive
to buy the greenback-priced commodity, although the gains were
capped by global demand outlook stemming from fears of a
recession.

Three-month copper on the London Metal Exchange was
up 0.3% to $8,938.50 a tonne by 0113 GMT.

The most-traded May copper contract on the Shanghai Futures
Exchange rose 0.5% to 69,300 yuan ($10,082.93) a tonne,
a near two-week high.

The dollar dipped on Wednesday, extending losses from the
previous session after data showed U.S. consumer prices rose
less than expected in March, raising expectations that the
Federal Reserve is likely to stop hiking rates after a possible
increase in May.

Other metals in Shanghai ticked up, with hopes of more
stimulus from top consumer China offering support.

SHFE aluminium advanced 0.5% to 18,530 yuan, zinc
added 0.4% to 22,065 yuan, lead nudged 0.3% up
to 15,320 yuan. Tin climbed 1.6% to 193,830 yuan,
nickel was up 0.3% to 182,500 yuan.

However, demand uncertainty continued to weigh on the
market.

Minutes from the Fed’s last policy meeting showed officials
forecasting that the banking sector stress would tip the economy
into recession.

Investors are cutting their bullish bets in major metals in
the face of rising recession risks, analysts at ANZ said in a
research note.

LME aluminium held steady at $2,325 a tonne, lead
dipped 0.1% to $2,126, nickel trimmed 0.1% at
$23,555. Zinc inched 0.3% up to $2,792 and tin
added 0.3% to $24,100.

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($1 = 6.8730 Chinese yuan)

(Reporting by Siyi Liu and Dominique Patton; editing by
Uttaresh Venkateshwaran)
((Siyi.Liu@thomsonreuters.com;))

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