Metals: Copper set for third straight weekly rise after Fed policy shift

Freeport Resources

28/08/2020 06:43

(Updates prices, adds quotes)
    By Mai Nguyen
    Aug 28 (Reuters) - Copper prices in London are on track for
their third straight week of gains on Friday, after traders
interpreted a policy shift by the U.S. Federal Reserve as
implying a weaker dollar and thus cheaper dollar-denominated
prices.
    Three-month copper on the London Metal Exchange  CMCU3 
advanced 0.4% to $6,645 a tonne by 0513 GMT, while the
most-traded October copper contract on the Shanghai Futures
Exchange  SCFcv1  rose 0.6% to 51,840 yuan ($7,537.95) a tonne.
    The Fed introduced new monetary policy on Thursday likely to
keep interest rates low and pressure the dollar  .DXY , which
has been hovering near a two-year low.  urn:newsml:reuters.com:*:nL1N2FT0PR
    "The comments from Federal Reserve Chair Powell will keep
prices supported, as low interest rates for longer will push the
U.S. dollar lower," said commodities broker Anna Stablum of
Marex Spectron. 
    "Still, sentiment is a bit fragile due to heightened
tensions in relation to the South China Sea."
    China's foreign ministry said on Thursday that it was unjust
for the United States to impose sanctions on Chinese companies
involved in construction in the South China Sea.  urn:newsml:reuters.com:*:nB9N2FG00F
    Stablum also said few LME investors were willing to put in
new positions on the last day of the month ahead of a long
weekend.
    The LME is closed for a public holiday on Aug. 31.
    
    FUNDAMENTALS
    * Freeport-McMoran Inc's  FCX.N  Indonesian unit would ease
a lockdown at its Grasberg mine after a protest by workers over
movements disrupted operations.  urn:newsml:reuters.com:*:nL4N2FT303
    * Activities at Indonesia's Weda Bay smelter complex, one of
the country's main nickel processing hubs, resumed on Thursday
after floods halted operations earlier this week.  urn:newsml:reuters.com:*:nL4N2FT35N
    * LME lead  CMPB3  rose 0.4% to $1,989 a tonne, while zinc
 CMZN3  rose 0.6% to $2,500 a tonne. In Shanghai, nickel
 SNIcv1  rose 0.1% to 119,790 yuan a tonne and zinc  SZNcv1 
advanced 0.7% to 19,970 yuan a tonne.
    * For the top stories in metals and other news, click       
 TOP/MTL  or  MET/L      
    

($1 = 6.8772 yuan)

 (Reporting by Mai Nguyen; Editing by Subhranshu Sahu and Amy
Caren Daniel)
 ((mai.nguyen@thomsonreuters.com; +6568703518; Reuters
Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
 
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