Market and product
METALS-London copper up on hopes of U.S. China trade progress
London copper climbed on Monday as hopes of progress in a trade dispute between the United States and China buoyed risk appetite and undermined safe-haven demand for the dollar.
The dollar sagged as investor demand receded, with the focus on discussions between the world’s top two economies due this week.
“With a relatively quiet week for data, prices are likely to remain sensitive to any volatility in emerging markets,” said ANZ in a report.
FUNDAMENTALS
* COPPER: London Metal Exchange rose by 0.7 percent to $5,969 a tonne by 0438 GMT, having closed on Friday down by 0.2 percent. Shanghai Futures Exchange copper rose by 0.4 percent to 48,060 yuan ($6,991) a tonne, with prices of both metals fading after an early short-covering burst.
* A weaker dollar boosts demand for dollar-priced commodities by making them cheaper for buyers paying with other currencies.
* Reports suggested that China and Washington would hold lower level trade talks on Aug. 21 and 22, just before $16 billion in new U.S. tariffs on Chinese goods take effect.
* COPPER: Chile’s Antofagasta, one of the world’s leading copper producers, expects copper prices to continue to be volatile due to global trade tensions, the head of the company was quoted in a local newspaper as saying on Sunday.
* COPPER: The union representing workers of Chilean copper mine Escondida signed a new collective labor contract on Friday, ending the risk of a strike that could have paralysed the world’s biggest copper mine, easing supply concerns.
* BATTERIES: China’s largest lithium battery maker Contemporary Amperex Technology Ltd plans to begin producing in 2019 next-generation nickel-rich batteries, which are cheaper to make, have longer life spans, and cut the need for cobalt, according to an internal company presentation and a company source.
* INVESTORS: Hedge funds and money managers trimmed their net short position in copper futures and options, data from the U.S. commodity regulator showed on Friday.
* OTHER METALS: Other metals also edged back from strong gains. LME lead was up 1.2 percent at $2,010 a tonne, having risen nearly 2 percent earlier, while LME zinc slipped 0.4 percent after an early 1.5 percent gain. LME nickel also pared gains, but held a 0.7 percent advance. - Reuters -
