METALS-Copper sheds gains as firmer dollar, inventory build-up weigh

(Adds comments, updates prices)

By Eileen Soreng

Jan 18 (Reuters) – London copper shed early gains on
Tuesday, as a firmer dollar made the greenback-priced metal
expensive for holders of other currencies, while higher
inventories in London Metal Exchange-registered warehouses eased
some fears of supply tightness.

Three-month copper on the London Metal Exchange was
down 0.1% at $9,724 a tonne, as of 0535 GMT.

The most-traded March copper contract on the Shanghai
Futures Exchange fell 0.4% to 69,950 yuan ($11,027.73)
a tonne.

“Market is in consolidation mode due to lack of convictions
among participants. If inventory builds turn out to be smaller
than expected, or we even start to see inventory drawdown post
Lunar New Year, I believe investors then will be more
comfortable to long again,” a Singapore-based trader said.

LME copper inventories were at 92,500 tonnes,
their highest level since November 2021.

The dollar strengthened 0.1%, as traders continued to
hold on to dollars but took the view that Federal Reserve
tightening plans were largely priced in. [USD/]

Meanwhile, leaders of a group of Peruvian communities said
in a public hearing on Monday that they rejected a government
proposal to prevent future blockades affecting MMG Ltd’s
Las Bambas copper mine.

FUNDAMENTALS

* LME aluminium rose 0.2% to $3,002 a tonne, nickel
was up 0.6% at $22,200, lead eased 0.1% to
$2,354.5 and zinc was flat at $3,509.5. Tin
climbed 1.7% to $42,000 a tone, a record high.

* ShFE aluminium was up 0.5% at 21,175 yuan a
tonne, nickel rose 0.7% to 163,990 yuan, zinc
fell 0.5% to 24,430 yuan and lead inched 0.1% lower to
15,615 yuan. Tin gained 3.7% to 316,950 yuan a tonne,
having earlier hit a record high of 319,700 yuan.

* The premium for cash nickel over the three-month contract
surged to $495 per tonne, highest since April 2009,
suggesting tightness in nearby supplies. Nickel inventories in
LME-registered warehouses were at 97,038 tonnes,
the lowest level in more than two years.

* Swedish mining and smelting group Boliden expects
to resume nickel production at its Harjavalta smelter in the
near future, the company said on Monday, after production was
stopped due to a slag explosion.

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

($1 = 6.3431 Chinese yuan)

(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V
and Sherry Jacob-Phillips)
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Keywords: GLOBAL METALS/ (UPDATE 1)

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