Aug 15 (Reuters) –Most nonferrous metals prices rose on Thursday, helped by hopes of an interest rate cut in the United States that could soften the dollar and support economic growth and metals consumption.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.2% to $8,986 per metric ton by 0350 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 advanced 0.2% to 72,260 yuan ($10,095.56) a ton.
The dollar was on the back foot after data showed U.S. inflation was slowing, underpinning wagers that the Federal Reserve could lower borrowing costs next month.
A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
Market participants are also keeping an eye on a strike at BHP’s BHP.AX huge Escondida mine, which produced nearly 5% of the world’s copper last year. Mine supply has been tight this year and partly contributed to copper prices hitting record highs in May.
However, gains were limited due to high inventories of copper cathode in LME warehouses MCUSTX-TOTAL, which were last at 307,425 tons, the highest since September 2019. Most inflows were into South Korea and Taiwan, places that are close to China.
“There’s a supply of sellers of copper at between $9,000 and $9,050, and this is in the face of the Escondida strike. High Asia copper inventories are spoiling the mood for the metal to rally,” said a trader.
LME aluminium CMAL3 rose 0.3% to $2,341.50 a ton, zinc CMZN3 edged up 0.1% at $2,717, lead CMPB3 increased 0.7% to $2,022.50, while, tin CMSN3 fell 0.1% to $31,385 and nickel CMNI3 was flat at $16,275.
SHFE aluminium SAFcv1 rose 0.6% to 19,160 yuan a ton, nickel SNIcv1 advanced 0.5% to 128,670 yuan, zinc SZNcv1 increased 0.3% to 22,845 yuan, lead SPBcv1 climbed 0.3% to 17,485 yuan and tin SSNcv1 was nearly flat at 256,070 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Eileen Soreng
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