Nov 25 (Reuters) – London copper was steady on Thursday, supported by strong U.S. economic data and concerns over tight global supply, although a firmer dollar and Federal Reserve’s taper timeline put some downward pressure on prices.
Three-month copper on the London Metal Exchange CMCU3 was steady at $9,845.50 a tonne, as of 0240 GMT, having scaled to a near one-month high of $9,880 on Wednesday.
The most-traded January copper contract on the Shanghai Futures Exchange SCFcv1 rose as much as 1.6% to 72,260 yuan ($11,311.30) a tonne, its highest since Oct. 22.
Data released on Wednesday showed U.S. weekly jobless claims fell and third-quarter GDP growth was revised higher, but other readings showed consumers paid much higher prices for goods through the third quarter, as inflation continued to accelerate.
The economic data prompted fears that the U.S. Fed could fasten its rate hike and bond purchase elimination, lifting the dollar towards its highest level in more than 16 months. A firmer dollar makes greenback-priced metals on the LME more expensive to holders of other currencies. USD/
A faster elimination of bond purchase and higher interest rates could reduce liquidity in the financial and dampen economic growth.
Copper is often used to gauge global economic health.
On-warrant LME copper inventories MCUSTX-TOTAL eased to 62,225 tonnes, down nearly 74% from 238,725 tonnes in August.
FUNDAMENTALS
* ShFE aluminium SAFcv1 rose 1.2% to 19,435 yuan a tonne, nickel SNIcv1 climbed 2.1% to 153,930 yuan a tonne and zinc SZNcv1 advanced 0.4% to 23,740 yuan a tonne.
* ShFE tin SSNcv1 rose as much as 2% to 293,690 yuan a tonne, its highest since Oct. 21, after the President of Indonesia, a major tin producer, said the country may stop tin exports from 2024 to attract downstream investments.
* LME aluminium CMAL3 was up 0.2% at $2,709 a tonne, nickel CMNI3 rose 0.5% to $20,950 a tonne, lead CMPB3 traded 0.5% higher at $2,274.50, while tin CMSN3 eased 0.3% to $39,850 a tonne after hitting a record high of $40,300 in the previous session.
* For the top stories in metals and other news, click TOP/MTL or MET/L
MARKETS NEWS
* Asian shares wobbled lower on Thursday, hurt by stronger U.S. dollar as investors bet on interest rates rising more quickly in the United States than in other major economies such as Japan and the euro zone. MKTS/GLOB
DATA/EVENTS (GMT)
0700 Germany GDP Detailed QQ SA Q3
0700 Germany GDP Detailed YY NSA Q3
($1 = 6.3883 yuan)
(Reporting by Eileen Soreng in Bengaluru; Editing by Sherry Jacob-Phillips)
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