Copper prices are down as the dollar gains ground – Reuters

Jan 17 (Reuters) – Copper prices edged lower on Monday as the dollar remained firm despite bets of several interest rate hikes this year by the U.S. Federal Reserve.

Three-month copper on the London Metal Exchange was down 0.1% at $9,713.5 a tonne at 0310 GMT. Prices fell 2.4% on Friday, their biggest drop since Nov. 26.

The most-traded copper contract in February on the Shanghai Futures Exchange fell 2.1% to 69,950 yuan ($11,014.19) a tonne.

The dollar maintained its gains, after rebounding from a more than two-month low in the previous session, making greenback-priced metals more expensive for holders of other currencies.

However, further declines were limited by still low inventory levels. LME copper inventories under mandate stood at 78,375 tonnes, down 67% from August highs.

Inventories in warehouses monitored by the Shanghai Futures Exchange stood at 30,330 tons, approaching their lowest level since 2009.

FUNDAMENTALS

* LME Aluminum edged up 0.2% to $2,983 a ton, Nickel fell 0.9% to $22,005 a ton, Lead edged up 0.4% to $2,364 , zinc fell 0.2% to $3,512.5 and tin gained 0.4% to $40,510.

* The premium for spot nickel on the three-month contract jumped to $376.50 a tonne, the highest since April 2009, suggesting tighter supplies nearby. Meanwhile, nickel stocks in LME-registered warehouses were 97,746 tonnes, the lowest since December 2019.

* Stocks in Shanghai Futures Exchange warehouses are near record highs at 4,711 tonnes.

* Aluminum ShFE fell 0.7% to 21,075 yuan per ton, nickel 1.3% to 161,990 yuan, zinc 1.9% to 24,445 yuan, lead 0.4% at 15,640 yuan and 0.5% tin at 305,480 yuan.

* China’s aluminum output for 2021 hit a record high, official data showed on Monday, although December’s monthly output fell from the corresponding period a year earlier. Read more

* China’s economy grew 4.0% in the fourth quarter from a year earlier, faster than expected but its weakest growth in a year and a half. Read more

* For top metal stories and other news, click or

MARKET NEWS

* Asian stock markets were choppy on Monday as a slew of Chinese economic data confirmed the destructive effect of coronavirus-related restrictions on consumer spending, prompting Beijing to ease monetary policy again.

DATA/EVENTS (GMT)

1400 Meeting of EU finance ministers in Brussels

The World Economic Forum holds an annual meeting (until January 22)

Bank of Japan holds monetary policy meeting (until Jan 18)

($1 = 6.3509 Chinese Yuan)

Reporting by Eileen Soreng in Bengaluru; Editing by Shounak Dasgupta

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