Nov 2 (Reuters) – Copper prices fell on Tuesday, weighed down by a weaker iron ore market and caution ahead of an interest rate meeting in the United States.
Three-month copper on the London Metal Exchange CMCU3 eased 0.1% to $9,549 a tonne by 0251 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 edged up 0.1% to 70,300 yuan ($10,986.09) a tonne.
The most-traded Dalian iron ore futures DCIOcv1 tumbled 10% to near a one-year low on increasing supplies and sluggish demand, partly from a poor real estate market hurt by a debt crisis at property giant China Evergrande Group 3333.HK.
Copper is widely used in construction, manufacturing and power, making it a good indicator for global economic health.
Prices of the metal moved in tight range and thin volume as market participants were waiting for more a U.S. Federal Reserve meeting on interest rates, which could impact economic growth and liquidity in the financial markets.
FUNDAMENTALS
* Top copper miner Codelco offered Chinese customers annual copper supply for 2022 at a premium of $105 a tonne, up 19.3% from $88 a tonne this year, extending a trend of higher premiums on strong copper demand and very low inventories.
* LME aluminium CMAL3 eased 0.2% to $2,715 a tonne, nickel CMNI3 fell 0.5% to $19,160 a tonne, tin CMSN3 rose 0.4% to $37,100 a tonne.
* ShFE aluminium SAFcv1 rose 0.3% to 20,120 yuan a tonne, zinc SZNcv1 dropped 1.2% to 23,820 yuan a tonne and tin SSNcv1 advanced 1.5% to 276,220 yuan a tonne.
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TOP/MTL or MET/L MARKETS NEWS
* Asian shares were mixed and currencies held tight ranges as nervous investors awaited several key central bank meetings that could set the tone for risk appetite heading into next year. MKTS/GLOB DATA/EVENTS (GMT)
0330 Australia RBA Cash Rate Nov
0850 France Markit Mfg PMI Oct
0855 Germany Markit/BME Mfg PMI Oct
0900 EU Markit Mfg Final PMI Oct
— US U.S. Federal Reserve’s Federal Open Market
Committee starts its two-day meeting on
interest rates
($1 = 6.3990 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich)
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