Metals: Copper breaks three days of losses on China hopes, weak dollar

Compagnie des Alpes SA

27/05/2022 11:19

* Dollar sinks as Fed rate-hike fears ease
    * Analyst sees copper ending year at $9,000
    * GRAPHIC-2022 asset returns: http://tmsnrt.rs/2jvdmXl

 (Adds analyst comment and LONDON dateline, updates prices)
    By Eric Onstad
    LONDON, May 27 (Reuters) - Copper prices rebounded on
Friday, breaking three days of losses on a weaker dollar and
hopes for a recovery in top metals consumer China from tough
COVID lockdowns.
    Three-month copper on the London Metal Exchange  CMCU3 
gained 1% to $9,450 a tonne by 0950 GMT, after giving up about
2% over the past three sessions.
    The most-traded July copper contract on the Shanghai Futures
Exchange  SCFcv1  ended daytime trade 1% higher at 71,900 yuan 
($10,677.64) a tonne.    
    Shanghai took more gradual steps on Friday towards lifting
its COVID-19 lockdown while Chinese equities gained on hopes for
additional stimulus measures.  urn:newsml:reuters.com:*:nL5N2XJ03L  urn:newsml:reuters.com:*:nAZN05H3TD
    Caroline Bain, chief commodities economist at Capital
Economics, was wary that China would offer huge support for its
economy.
    "The Chinese authorities are moving quite cautiously on
stimulus. I think things will have to get a bit worse (to see
major stimulus)," Bain said.
    While Chinese COVID restrictions are likely to be lifted in
coming months, developed economics are set for weaker growth,
Bain said.
    "The combination of subdued growth in China and a slowdown
in the U.S. and Europe, means that prices have further to fall,"
she said, adding that her year-end price target for copper is
$9,000.

    * Supporting the metals market was a softer dollar index,
which sank to a one-month low as traders lowered Federal Reserve
rate hike expectations. A weaker greenback makes metals priced
in dollars cheaper for holders of other currencies.  FRX/ 
    * Workers at Russian aluminium giant Rusal's  RUAL.MM 
Guinea bauxite mine Compagnie des Bauxites de Dian-Dian went on
strike on Thursday, in a move Rusal said was illegal.
 urn:newsml:reuters.com:*:nL2N2XI13X
    * COLUMN-Market turbulence won't slow aluminium's green
drive: Andy Home  urn:newsml:reuters.com:*:nL2N2XI191
    * LME aluminium  CMAL3  rose 0.6% to $2,882 a tonne, zinc
 CMZN3  climbed 1.8% to $3,801.50, lead  CMPB3  added 0.4% to
$2,136.50, tin  CMSN3  advanced 0.8% to $33,905, and nickel
 CMNI3  jumped 3.9% to $28,250.
   
    ($1 = 6.7337 Chinese yuan)

 (Reporting by Eric Onstad, Editing by Louise Heavens)
 ((eric.onstad@thomsonreuters.com; +44 20 7542 7093; Twitter https://twitter.com/reutersEricO;
 Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))
 
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