Jan 6 (Reuters) - Copper prices fell on Thursday as the
dollar firmed after minutes from the U.S. Federal Reserve's
meeting signalled that the central bank may raise interest rates
sooner than expected.
While a firmer U.S. dollar makes greenback-priced metals
more expensive to holders of other currencies, an interest rate
hike could trim liquidity in financial markets and slow recovery
in the world's biggest economy.
Three-month copper on the London Metal Exchange <CMCU3> was
down 0.5% at $9,648.5 a tonne, as of 0300 GMT. The most-traded
February copper contract on the Shanghai Futures Exchange
<SCFcv1> slipped 0.7% to 69,730 yuan ($10,944.05) a tonne.
A "very tight" job market and unabated inflation might
require the Fed to raise interest rates sooner than expected,
policymakers said in the December meeting, fuelling expectations
of a rate hike in March. [nL1N2TL203] [nL1N2TL203]
Fed's hawkish signal helped buoy the dollar index <=USD>
with the greenback hovering near a five-year high to the yen.
[USD/]
Among other industrial metals, LME aluminium <CMAL3> eased
0.3% to $2,912.5 a tonne, nickel <CMNI3> fell 0.9% to $20,465 a
tonne, lead <CMPB3> was down 0.3% at $2,280.5 a tonne, zinc
<CMZN3> dipped 0.5% to $3,571.5 a tonne and tin <CMSN3> edged up
0.2% to $39,360 a tonne.
FUNDAMENTALS
* ShFE aluminium <SAFcv1> rose 2.2% to 20,735 yuan a tonne,
nickel <SNIcv1> slipped 1.7% to 150,900 yuan, zinc <SZNcv1> was
up 0.4% at 24,470 yuan and lead <SPBcv1> fell 1% to 15,120 yuan.
Tin <SSNcv1> edged 0.2% higher to 295,880 yuan a tonne.
* Indonesian authorities postponed a meeting with coal
mining companies on Wednesday, as scores of ships moored off the
coast remained in limbo as they waited to see whether the
government would lift a ban on coal exports. [nL1N2TL0DL]
* Australian diversified miner South32 Ltd <S32.AX> said on
Thursday it would spend about $70 million to restart the Alumar
aluminium smelter in Brazil with its joint venture partner Alcoa
Corp <AA.N>.
* For the top stories in metals and other news, click
[TOP/MTL] or [MET/L]
MARKETS NEWS
* Asian shares fell on Thursday, extending a global slump
after Federal Reserve meeting minutes pointed to a
faster-than-expected rise in U.S. interest rates due to concerns
about persistent inflation. [MKTS/GLOB]
DATA/EVENTS (GMT)
0700 Germany Industrial Orders MM Nov
0930 UK Reserve Assets Total Dec
1300 Germany CPI Prelim YY Dec
1300 Germany HICP Prelim YY Dec
1330 US International Trade Nov
1330 US Initial Jobless Clm Weekly
1500 US Factory Orders MM Nov
1500 US ISM Non-Mfg PMI Dec
($1 = 6.3715 Chinese yuan)
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry
Jacob-Phillips)
(([email protected]; Within U.S. +1 646 223
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