METALS-London copper rises as upbeat China data boosts optimism
(Updates prices, adds quotes)
Sept 30 (Reuters) – London copper edged up on Wednesday as solid manufacturing and services data from top consumer China boosted optimism, but a stronger U.S. dollar capped gains.
Three-month copper on the London Metal Exchange rose 0.2% to $6,593.50 a tonne by 0346 GMT, having risen as much as 0.9% earlier in the session. The most-traded November copper contract on the Shanghai Futures Exchange dipped 0.1% to 51,000 yuan ($7,486.24) a tonne.
China’s factory activity extended solid growth in September, official and private surveys showed, as the nation’s exports engine revved up on improving overseas demand and underlined a steady economic recovery from the coronavirus shock.
Meanwhile, China’s services sector grew at a faster pace in September.
“Solid data out of China gave prices a boost earlier this morning. But as the dollar strengthened copper pared earlier gains. The currency remains the key driver,” said commodities broker Anna Stablum of Marex Spectron.
A stronger U.S. dollar made greenback-priced metals less attractive to holders of other currencies.
“Turnover is low as it is the last day of the quarter with some book squaring also impacting prices. China is going on holiday tomorrow so we expect volumes to be even thinner over the next week,” she added.
* LME aluminium fell 0.5% to $1,775 a tonne while zinc advanced 0.1% to $2,426.50 a tonne. ShFE aluminium slipped 0.4% to 14,150 yuan a tonne while nickel fell 0.8% to 112,530 yuan a tonne.
* Nickel smelting park PT Indonesia Weda Bay Industrial Park expects to complete building four nickel processing plants next year, which would double its current capacity of 110,000 tonnes of nickel content per year.
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