Copper rises in Shanghai on dollar weakness, doubts weigh on short-term demand

By: News Team

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Copper rises in Shanghai on dollar weakness, doubts weigh on short-term demand

Prices for copper They rose in Shanghai on Monday as the dollar weakened and inventories fell, although uncertain near-term demand prospects limited gains.

The most traded copper contract for January on the Shanghai Futures Exchange (SHFE) ended the day up 0.8 percent at 66,040 yuan ($9,481.01) a tonne.

  • The London Metal Exchange will be closed on Monday for the Christmas festivities.

On Friday, the dollar fell against most currencies after data indicated the U.S. economy is cooling somewhat, bolstering expectations of lower interest rate hikes by the Federal Reserve and improving investors’ risk appetite.

  • On Monday, the Dollar Index It fell 0.09% to 104.19. A weaker dollar makes commodities quoted on the greenback more attractive to buyers with other currencies.

Meanwhile, copper stocks at SHFE warehouses fell 14.8% on Friday, to 54,569 tonnes. However, inventories at customs warehouses in Shanghai and Guangzhou stood at 49,600 tonnes on Dec. 23, up from 26,600 tonnes a month ago, according to information provider Shanghai Metals Market (SMM).

The data followed a decline in import activities as copper buyers were cautious about buying raw materials due to persistent weakness in demand, a trader said.

  • In other precious metals, aluminium in the SHFE it rose 0.5% to 18,715 yuan a tonne; the zinc advanced 1.6 percent to 23,520 yuan; the nickel gained 1.1% to 218,690 yuan; and tin added 0.7 percent to 197,940 yuan.

(1 dollar = 6.9655 yuan)

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