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METALS-Industrial metals slip as China demand woes resurface, dollar firms

reuters.com · 06/09/2022 22:09
METALS-Industrial metals slip as China demand woes resurface, dollar firms

- Copper and other industrial metals fell on Friday, as a stronger U.S. dollar and renewed worries over demand due to partial lockdowns in top metals consumer China weighed on sentiment.


FUNDAMENTALS

* Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,590 a tonne, as of 0235 GMT, after dropping 1.2% in the previous session. Still, the contract has gained nearly 1% so far this week.

* The most-traded July copper contract in Shanghai SCFcv1 fell 0.5% at 72,490 yuan ($10,831.53) a tonne.

* Shanghai and Beijing went back on fresh COVID-19 alert on Thursday after parts of China's largest economic hub imposed new lockdown restrictions and the city announced a round of mass testing for millions of residents. nL1N2XW01L

* The dollar was at a two-week high versus the euro, ahead of inflation data that should guide the U.S. Federal Reserve's policy tightening path, and after the European Central Bank said it would start its rate-hike campaign next month. USD/

* The U.S. Fed will hike its key interest rate by 50 basis points in June and July, according to a Reuters poll, with rising chances of a similar move in September. nL4N2XV2G3

* China's factory-gate inflation cooled in May, official data showed on Friday, depressed by weak demand for steel, aluminium and other key industrial commodities due to tight COVID-19 curbs. nAZN077VH5

* COLUMN-LME nickel lawsuits are about principle as much as money: Andy Home. nL1N2XW0ZH

* Brazilian miner Vale SA VALE said on Thursday it had completed studies for potentially developing a nickel sulfate operation in Quebec, Canada, with annual capacity seen at 25,000 tonnes. nL1N2XW11Z

* A group of indigenous Peruvian communities on Thursday agreed to temporarily lift a protest against MMG Ltd's MMLTF Las Bambas copper mine that forced the company to halt operations for more than 50 days. nL1N2XW2OP


MARKETS NEWS

* Asian shares tracked Wall Street lower on Friday, after rate-hike outlook from the ECB and upcoming U.S. inflation data unnerved investors amid heightened concerns about global growth. MKTS/GLOB


DATA/EVENTS (GMT)

1230 US CPI MM, SA May

1400 US U Mich Sentiment Prelim June



PRICES
Three month LME copper CMCU3

Most active ShFE copper SCFcv1

Three month LME aluminium CMAL3

Most active ShFE aluminium SAFcv1

Three month LME zinc CMZN3

Most active ShFE zinc SZNcv1

Three month LME lead CMPB3

Most active ShFE lead SPBcv1

Three month LME nickel CMNI3

Most active ShFE nickel SNIcv1

Three month LME tin CMSN3
Most active ShFE tin SSNcv1

($1 = 6.6925 Chinese yuan)


(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)

((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))

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