London copper rises 2% amid greater risk appetite and supply concerns

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Copper prices in London jumped more than 2% on Thursday, boosted by improving risk sentiment after the US Federal Reserve took a bullish tone on the economic recovery, while production halted in a Peru’s large mine has exacerbated supply problems.

Three-month copper on the London Metal Exchange was up 2% to $ 9,385 a tonne as of 03:30 GMT. In the previous session, the metal hit a low since Oct. 7 at $ 9,135.

The most-traded copper contract in January on the Shanghai Futures Exchange edged down 0.1% to 68,590 yuan ($ 10,771.04) per tonne.


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The U.S. central bank has said it will end its bond purchases in March and pave the way for interest rate hikes of three-quarters of a percentage point by the end of 2022 as the economy is approaching full employment and the central bank is facing a surge in inflation.

Meanwhile, LME inventories on mandate fell to 80,720 tonnes, with the LME counting copper on the three-month contract revert to a premium of $ 15 per tonne.

MMG Ltd announced Thursday that it will halt production at its Las Bambas copper mine in Peru from December 18 after the miner failed to reach an agreement with the Peruvian community blocking a transport route used by the ‘installation.


* LME aluminum rose 1.3% to $ 2,629.5 per tonne, zinc rose 1.5% to $ 3,319 per tonne, nickel rose 1.2 to $ 19,335 per tonne tonne and lead increased 0.6% to $ 2,298 per tonne.


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* Aluminum ShFE gained 0.7% to 19,245 yuan per ton, nickel edged up 0.2% to 142,710 yuan per ton, lead fell 0.6% to 15,355 yuan per ton and tin rose 0.1% to 283,610 yuan per ton.

* China’s finance ministry said on Wednesday that it would increase the export tax on blister pack copper in 2022. A table released by the ministry showed that export duties on unrefined copper and copper anodes intended for at electrolytic refining would double to 30% next year. However, Chinese exports of this category totaled only 122 tons in the first 10 months of this year.

* Shanghai regulators, including local branches of the People’s Bank of China and the China Banking and Insurance Regulatory Commission, held meetings with some real estate companies on Wednesday and December 9, offering to help the struggling industry, local media reported.


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* The dollar took a hiatus on Thursday, after giving up on a brief rally after the US Fed said it would end bond purchases during the pandemic in March, as investors awaited imminent decisions from further large central banks.

* Asian stocks followed Wall Street higher on Thursday after the US Fed’s decision to revive bond buying.


0815 France Markit Mfg Flash PMI Dec

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1200 BOE UK Discount rate Dec.

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1330 Number of housing starts in the United States in November

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1:30 p.m. Press conference following the ECB Governing Council meeting in Frankfurt

($ 1 = 6.3680 Chinese yuan) (Reporting by Eileen Soreng in Bangalore; Editing by Sherry Jacob-Phillips)



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