Please use symbol entry at top right of page to search

METALS-Copper, aluminium gain on China recovery hopes, Fed rate hike

    (Adds comments, details, updates prices)
    By Brijesh Patel
    June 16 (Reuters) - Prices of copper and aluminium rose on
Thursday, supported by hopes of recovery in top metals consumer
China and a 75 basis point interest rate hike by the U.S.
Federal Reserve in a widely expected move.
    Three-month aluminium on the London Metal Exchange
gained 1.6% to $2,633.50 a tonne, as of 0413 GMT, while copper
        rose 0.6% to $9,287 a tonne.
    The most-traded July aluminium contract in Shanghai
was up 1% at 20,105 yuan ($3,000.66) a tonne by the midday
    "Markets got worked up about inflation and pace of rate
hikes and when it happens, the anxiety fades and its helping the
metals," a Singapore-based metals trader said.
    The U.S. central bank on Wednesday approved its biggest
interest rate hike since 1994, lifting the target federal funds
rate by 75 basis points to a range of between 1.5% and 1.75%.

    China's economy showed signs of recovery in May after
slumping in the prior month as industrial production rose
    China's monthly production of aluminium reached a record
high in May following easing in power consumption curbs and as
COVID-19-induced lockdowns had little impact on output.

    "Factories numbers in China will pick up as cities reopen
but prices are expected to be range-bound due to weak demand to
come in the months ahead."

    SUPPORT: China's state planner said it would expand the
scope of use of funds raised by local government special bonds
and ensure reasonable economic growth in the second quarter.

    DOLLAR: The dollar retreated from a 20-year high, making
greenback-priced commodities cheaper for buyers using other
    INVENTORIES: Aluminium stocks in
LME-registered warehouses fell to a fresh 21-year low of 416,125
tonnes, compared with nearly 2 million tonnes in March 2021.
    At 121,525 tonnes, copper stocks in LME-registered
warehouses have dropped more than 30% since the middle of May.

    OTHER METALS: LME zinc         rose 2.1% to $3,720 a tonne,
lead         gained 1.1% to $2,100.50, and tin         climbed
0.4% to $32,585.
    Shanghai copper          was flat, zinc          gained
1.1%, nickel          gained 1.2%, lead          edged 0.4%
higher, and tin          jumped 6.3%.

($1 = 6.7002 Chinese yuan renminbi)

 (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.