METALS-Copper prices rise on stimulus hopes in top consumer China

Jan 19 (Reuters) – Copper prices in London inched higher on
Wednesday, supported by expectations of further policy easing in
top metals consumer China, although gains were capped by a
firmer U.S. dollar.

Three-month copper on the London Metal Exchange rose
0.3% to $9,703 a tonne by 0310 GMT, while the most-traded March
copper contract on the Shanghai Futures Exchange was
steady at 70,050 yuan ($11,026.46) a tonne.

China’s central bank will roll out more policy measures to
stabilise the economy, vice governor Liu Guoqiang said on
Tuesday, following the latest rate cut.

The dollar was steady after rising 0.5% on Tuesday,
bolstered by a jump in U.S. Treasury yields in anticipation of
rising interest rates. [USD/]

Copper stocks in LME-registered warehouses
climbed to their highest in two months at 94,525 tonnes, easing
some concerns about supply tightness.

FUNDAMENTALS

* LME aluminium rose 0.1% to $3,027 a tonne, nickel
was up 1.2% at $22,330, lead edged 0.3% higher
to $2,329, zinc gained 0.2% to $3,573 and tin
fell 0.4% to $42,135.

* ShFE aluminium was up 2% at 21,580 yuan a tonne,
nickel gained 0.9% to 164,920 yuan, zinc
climbed 1.7% to 24,870 yuan and lead fell 0.8% to
15,500 yuan. Tin was up 1.3% at 318,220 yuan a tonne,
having earlier hit a record high of 319,870 yuan.

* Nickel inventories in LME-registered warehouses
declined further to 94,872 tonnes, the lowest
since December 2019. Supply worries kept the premium for LME
cash nickel to the three-month contract near its
highest in more than a decade at $370 per tonne.

* China’s copper exports rose to an annual record of 932,451
tonnes in 2021, according to customs data.

* China’s aluminium imports in December eased from the
previous month, snapping three monthly gains, although imported
volumes were strong enough to solidify 2021’s position as a
record year of shipments.

* Industry association Eurometaux has asked EU policymakers
to allow member states to support domestic producers of
aluminium, zinc and silicon with state aid to ensure supplies of
the metals crucial for the transition to low carbon energy.

* For the top stories in metals and other news, click
[TOP/MTL] or [MET/L]

MARKETS NEWS

* Asia’s share markets struggled as U.S. Treasury yields hit
fresh two-year highs and a global technology stock sell-off
unsettled investors worrying about inflation and bracing for
tighter U.S. monetary policy. [MKTS/GLOB]

DATA/EVENTS (GMT)

0700 UK

CPI YY

Dec

0700 Germany HICP Final YY

Dec

1330 US

Housing Starts Number Dec

($1 = 6.3529 Chinese yuan)

(Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu
Sahu)
(([email protected]; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
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