Copper, base metals gain on relief from softer dollar
XLB•Other LME and SHFE metals trade mixed
Among other LME metals, zinc CMZN3 gained 0.52%, lead CMPB3 added 0.34%, nickel CMNI3 dipped 0.27% and tin CMSN3 added 0.46%.
Elsewhere on SHFE, zinc SZNcv1 ticked 0.06% higher, lead SPBcv1 dipped 0.1%, nickel SNIcv1 added 0.41% and tin SSNcv1 gained 0.87%.
Copper and base metals rise on weaker dollar
Copper and most of the wider industrial metals complex ticked up on Thursday, supported by a weaker dollar after the U.S. Federal Reserve said it would keep interest rates stable.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.7% at $13,676 a metric ton by 0300 GMT. The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was up 0.12% at 104,920 yuan ($15,520.25) a ton.
The dollar fell to a one-week low as markets digested a possibly less hawkish Fed interest rate path after policymakers voted 9-3 to keep rates steady on Wednesday.
A cheaper dollar can boost greenback-denominated commodities by making them more affordable for buyers using other currencies, and higher interest rates can weigh on growth-dependent commodities by dampening economic activity.
Aluminium strong as inventories stay at record lows
Meanwhile, aluminium remained strong. It was up 0.35% on the LME CMAL3 and 1.07% on the SHFE SAFcv1.
Supply of the light metal has been buffeted by fighting in the big producer Middle East, which raged on, as the U.S. launched new strikes on Iran.
LME inventories of aluminium MALSTX-TOTAL are at their lowest level on record with the vast majority of remaining stocks of Russian origin, which many traders avoid anyway.
