By Eileen Soreng
Nov 24 (Reuters) – London copper prices edged up on Wednesday as tight supplies and easing concerns about Chinese demand lent the metal some support, but a firmer dollar capped gains.
Three-month copper on the London Metal Exchange CMCU3 rose 0.3% to $9,737.50 a tonne by 0630 GMT.
The most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.2% at 71,110 yuan ($11,131.29) a tonne.
Volumes were expected to be low heading into the U.S. Thanksgiving holiday.
The dollar index =USD was steady after hitting a more than 16-month peak on Tuesday as Federal Reserve Chair Jerome Powell was nominated for a second term, fuelling expectations of sooner interest-rate hikes. USD/
A firmer dollar makes commodities priced in the dollar more expensive for buyers using other currencies.
“Improving power supply in China is easing some of downstream demand concerns (for copper). We expect downside to remain protected as tightness is likely to persist in the near-term,” said ANZ analyst Soni Kumari.
Copper stocks in ShFE-registered warehouses CU-STX-SGH were at 34,918 tonnes, the lowest since June 2009.
On-warrant LME copper inventories MCUSTX-TOTAL edged up slightly to 62,775 tonnes, but still down 73.7% from 238,725 tonnes seen in August.
“Metals prices should (also) benefit from latest announcement from China to ease fiscal policy and more supports for property market,” Kumari added.
China will keep liquidity reasonably ample and reduce funding costs, especially for small firms, in a bid to support the slowing economy, while some Chinese banks have been told to issue more loans to property firms for project development.
FUNDAMENTALS
* Indonesia may stop tin exports in 2024 as part of efforts to attract investment into the resource processing industry and improve the country’s external balance, President Joko Widodo said.
* ShFE aluminium SAFcv1 edged 0.5% higher to 19,280 yuan a tonne, nickel SNIcv1 rose 1.1% to 152,980 yuan a tonne and lead SPBcv1 gained 2.2% to 15,270 yuan a tonne.
* LME aluminium CMAL3 was up 0.7% at $2,688 a tonne, nickel CMNI3 rose 1.1% to $20,575 a tonne, zinc CMZN3 was 0.7% higher at $3,325 a tonne and lead CMPB3 gained 1.3% to $2,281.50 a tonne.
* For the top stories in metals and other news, click TOP/MTL or MET/L
($1 = 6.3883 yuan)
(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V and Rashmi Aich)
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