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China move to support yuan helps copper bounce back at LME- 2016 China(Guangzhou)Non-Ferrous Metals Exhibition
1/20/2016 non-ferrous metals expo |
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Reuters reported that copper rallied on Monday at LME after a move by China''s central bank to support the yuan triggered a reversal of bets on lower prices but the mood was expected to stay bearish on concern over demand growth in the top consumer. Benchmark copper on the London Metal Exchange ended up one percent at $4,375 a tonne. Copper had touched $4,318 on Friday, its lowest since May 2009.
China''s central bank on Monday confirmed it was preparing to raise the reserve requirement ratio next week for yuan deposits placed in yuan clearing banks from zero to the normal level. A weaker yuan means metals priced in dollars cost more and erode Chinese firms'' purchasing power.
Traders expect volumes to start dwindling and more short position covering as the holiday approaches. China''s Lunar New Year Holiday runs for a week from February 8. One trader also said metals could be supported if the US Federal Reserve limits rate hikes.
Three-month aluminium rose 0.4 percent to $1,479 a tonne, zinc gained 1.4 percent to $1,496, lead rose 0.7 percent to $1,607, tin added 0.2 percent to $13,325 and nickel added 2.3 percent to $8,590 a tonne.
-non-ferrous
metals- 2016 China(Guangzhou)Non-Ferrous Metals Exhibition
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