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BEIJING, Oct 26 (Reuters) – Copper fell on Wednesday amid policy uncertainties in the world’s top metals consumer China, while aluminium rose on a weaker dollar.
Three-month copper on the London Metal Exchange CMCU3 slid 0.2% to $7,510 a tonne by 0202 GMT, extending losses from the previous session.
The most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 was down 0.3% to 62,800 yuan ($8,603.56) a tonne.
Investors were worried about Beijing’s policy direction following the 20th National Congress of the Communist Party of China that ended last weekend, as reflected by sell-off earlier this week that dragged down Chinese assets market and Chinese yuan.
Although China’s GDP rebounded at a faster-than-expected pace in the third quarter, but strict COVID-19 curbs, a deepening property crisis and global recession risks are challenging Beijing’s efforts to foster a robust revival over the next year.
The dollar fell to a three-week low on Tuesday, as weakening U.S. economic data cooled expectations on the pace of future U.S. rate hikes.
A weaker dollar makes it cheaper for non-U.S. currency holders to buy the greenbank-priced commodity.
LME aluminium CMAL3 climbed 0.8% at $2,233 a tonne, zinc CMZN3 declined 0.6% to $2,889 a tonne, lead CMPB3 lost 0.2% to $1,865.60, while tin CMSN3 edged up 0.1% at $18,500.
Supply uncertainties continued to overhang on the market with the LME under discussion of blocking Russian metal from its trading system, and also possible restrictions to be implemented by the U.S. on imports from Russia.
Aurubis NAFG.DE, Europe’s biggest copper producer, wants the London Metal Exchange to impose an immediate ban on Russian metal due to risk of warehouses filling up as consumers shun it, its CEO told Reuters on Tuesday.
SHFE aluminium SAFcv1 added 0.7% to 18,650 yuan a tonne, nickel SNIcv1 gained 0.7% to 189,510 yuan a tonne, while zinc SZNcv1 lost 1.2% to 24,275 yuan a tonne.
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($1 = 7.2993 Chinese yuan renminbi)
(Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi Aich)
((Siyi.Liu@thomsonreuters.com;))
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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