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July 13 (Reuters) – London copper prices fell to a near 20-month low on Wednesday, as an elevated U.S. dollar, renewed COVID-19 restrictions in top consumer China and fears of rapid interest rate hikes stifled demand.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange CMCU3 was flat at $7,352.50 a tonne by 0214 GMT, after hitting its lowest since Nov. 23, 2020 at $7,202.50 in early Asian trade.
* The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 fell 2.7% to 56,400 yuan ($8,386.24) a tonne.
* The dollar =USD held close to its highest in nearly two decades against its rivals, making greenback-priced metals more expensive for other currency holders. USD/
* Multiple Chinese cities are adopting fresh COVID-19 curbs, from business halts to lockdowns, to rein in new infections, while Shanghai residents queued up in sweltering heat for compulsory mass testing for COVID-19 on Tuesday.
* The U.S. economy is slowing as consumers are buffeted by inflation and pandemic-driven demand for goods returns to more normal levels, Richmond Federal Reserve president Thomas Barkin said.
* The U.S. central bank is widely expected to deliver another 75-basis-point rate hike at its policy meeting later this month to combat soaring inflation. FEDWATCH
* The Quellaveco copper mine in Peru, owned by global miner Anglo American AAL.L and Japan’s Mitsubishi Corp 8058.T, has started production of copper concentrate, the Japanese trading house said on Tuesday.
MARKETS NEWS
* World stocks traded mixed while oil prices and bond yields dipped on Tuesday, as traders fretted over prospects of further central bank tightening and worries about the health of economies worldwide. MKTS/GLOB
DATA/EVENTS (GMT)
0300 China Exports, Imports YY June
0300 China Trade Balance June
0600 UK GDP Est 3M/3M May
0600 UK GDP Estimate MM, YY May
0600 UK Manufacturing Output MM May
0600 Germany HICP Final YY June
0645 France CPI (EU Norm) Final MM, YY June
1230 US CPI MM, SA June
PRICES Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Most active ShFE nickel SNIcv1
Three month LME tin CMSN3 Most active ShFE tin SSNcv1
($1 = 6.7253 Chinese yuan renminbi)
(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)
((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.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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