Copper prices in London treaded water on Wednesday as investors remained cautious ahead of a key U.S. Federal Reserve gathering which could shed light on any plans for policy tapering in the world’s biggest economy.
Three-month copper on the London Metal Exchange was almost unchanged at $9,375 a tonne by 0707 GMT. The most-traded October copper contract on the Shanghai Futures Exchange closed up 0.9% to 69,100 yuan ($10,668.85) a tonne, tracking overnight gains in London.
Copper is often used as a gauge for global economic health. A policy tightening in the United States could slow its economic recovery and boost the dollar, making greenback-priced metals more expensive to holders of other currencies.
Fed Chair Jerome Powell is due to speak at the bank’s Jackson Hole symposium on Friday.
“The market sentiment is still in a state of vigilance, waiting for the Fed,” said Huatai Futures in a report, adding prices will fluctuate widely with downside risk pressuring.
“Whether the pandemic situation can be reversed in the medium to long term remains to be tested,” it said.
FUNDAMENTALS
* LME aluminum rose 0.2% to $2,621 a tonne, zinc fell 0.1% to $3,015.50 a tonne and tin dipped 0.3% to $32,735 a tonne.
* ShFE aluminum advanced 0.9% to 20,600 yuan a tonne, zinc climbed 1.4% to 22,590 yuan a tonne and tin increased 2.1% to 240,440 yuan a tonne.
* LME cash aluminum has been trading at premium over the three-month contract for eight straight sessions by Tuesday, as inventories in both LME and ShFE warehouses fell.
* Prices of aluminum raw material alumina have hit their highest in almost six months after a blaze at the Jamalco refinery in Jamaica led to fears of tighter supply.
($1 = 6.4768 yuan)
Source: Reuters (Reporting by Mai Nguyen in Hanoi; editing by Uttaresh.V and Krishna Chandra Eluri)