Nov 22 (Reuters) – Base metal prices mostly traded lower on Friday, pressured by a stronger dollar and risk-averse sentiment due to the escalating conflict in the Ukraine-Russia war.
Three-month copper on the London Metal Exchange (LME) eased 0.1% to $8,999 per metric ton by 0334 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) fell 0.9% to 73,800 yuan ($10,184.65) a ton.
Escalations in the Russia-Ukraine war rattled risk appetite across financial markets, while a stronger dollar – on track for the eighth straight weekly gain – made greenback-priced metals more expensive to holders of other currencies.
“I think the war is a wild card so risk-off pivot will hurt base metals. The higher dollar is putting pressure on base metals too,” said a metals trader.
“There is still no good news from China on how they’ll stimulate more, although they are on the right track. Bitcoin is taking away attention from commodities as well,” the trader said.
Bitcoin came within a whisker of closing above $100,000 for the first time on Thursday as the election of Donald Trump as U.S. president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.
Physical copper demand showed a slight uptick during China’s traditionally strong consumption season, as indicated by a modest decline in SHFE inventories.
SHFE copper stocks
were last at 130,465 tons, the lowest since Feb. 8.
LME aluminium fell 0.4% to $2,620.50, while nickel edged 0.1% higher to $15,725, zinc advanced 0.4% to $3,003, lead increased 0.5% to $2,009 and tin was up 0.8% at $28,980.
SHFE aluminium fell nearly 1% to 20,520 yuan a ton, nickel dropped 1.5% to 125,390 yuan, lead declined 0.3% to 16,920 yuan, tin was down 0.9% at 241,240 yuan while zinc rose 0.2% to 25,245 yuan.
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($1 = 7.2462 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips)
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