Latest news with #AlastairMunro
Business Recorder
4 days ago
- Business
- Business Recorder
Copper hits one-week high on Chinese buying
LONDON: Copper climbed to a more than one-week high on Friday, driven by Chinese buyers, hopes for a US-China trade deal, and higher risk appetite among other investors. Three-month copper on the London Metal Exchange gained 0.8% to $9,745 per metric ton by 1400 GMT, its strongest since July 9. LME copper has eased from its three-month peak of $10,200.50, hit on July 2, and Chinese participants are buying on dips, Marex senior base metals strategist Alastair Munro said. 'Add to that chatter on wires around a potential US-Sino trade agreement in months surprise remains on the topside.' China's commerce minister said on Friday the country, the world's biggest metals consumer, wants to bring its trade ties with the US back to a stable footing. Hopes for more metals-intensive economic support were buoyed after an official with the industry ministry said China would issue action plans to stabilise growth in the machinery, autos, and electrical equipment sectors. The most-traded copper contract on the Shanghai Futures Exchange rose 0.7% to 78,410 yuan ($10,922.74) a ton. 'LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops,' a Shanghai-based metals analyst at a futures company said. Also supporting the market was higher risk appetite among investors in general as stock markets moved higher, and a weaker dollar. A softer dollar makes commodities priced in the greenback less expensive for buyers using other currencies. US Comex copper futures climbed 1.3% to $5.58 a lb, bringing the premium of Comex over LME copper to $2,554 a ton. Nickel was the weakest performing LME metal on rising inventories and weak demand for the metal mainly used to make stainless steel and electric vehicle batteries. It was up 0.5% to $15,170 a ton after earlier sinking into the red.
Business Recorder
5 days ago
- Business
- Business Recorder
Copper hits one-week high on Chinese buying, hopes for trade deal
LONDON: Copper climbed to a more than one-week high on Friday, driven by Chinese buyers, hopes for a U.S.-China trade deal, and higher risk appetite among other investors. Three-month copper on the London Metal Exchange gained 0.6% to $9,720 per metric ton in official open-outcry trading after touching its strongest since July 10. LME copper has eased from its three-month peak of $10,200.50, hit on July 2, and Chinese participants are buying on dips, Marex senior base metals strategist Alastair Munro said. 'Add to that chatter on wires around a potential U.S.-Sino trade agreement in months ahead…The surprise remains on the topside.' China's commerce minister said on Friday the country, the world's biggest metals consumer, wants to bring its trade ties with the U.S. back to a stable footing. Hopes for more metals-intensive economic support were buoyed after an official with the industry ministry said China would issue action plans to stabilise growth in the machinery, autos, and electrical equipment sectors. The most-traded copper contract on the Shanghai Futures Exchange rose 0.7% to 78,410 yuan ($10,922.74) a ton. Rising inventories, stronger dollar keep copper under pressure 'LME copper stocks have been rising, mainly at its Asia warehouses as some traders may be betting on more buying by China with recent price drops,' a Shanghai-based metals analyst at a futures company said. Also supporting the market was higher risk appetite among investors in general as stock markets moved higher, and a weaker dollar. A softer dollar makes commodities priced in the greenback less expensive for buyers using other currencies. U.S. Comex copper futures climbed 1.5% to $5.60 a lb, bringing the premium of Comex over LME copper to $2,603 a ton. Among other metals, LME aluminium rose 0.7% to $2,595 a ton, zinc advanced 1.6% to $2,782, lead gained 1.3% to $1,999, nickel was little changed at $15,100 and tin rose 0.6% to $33,200.
Business Recorder
26-06-2025
- Business
- Business Recorder
Copper pushes to near three-month peak on weak dollar
LONDON: Copper prices jumped to their highest level in nearly three months on Thursday, propelled by a weak dollar, concerns over supply and buying by speculators after key technical levels were broken. Three-month copper on the London Metal Exchange gained 1.8% to $9,882 a metric ton by 1415 GMT after hitting its strongest level since March 27 at $9,892. 'What is key for us is dollar weakness, and that is trending lower, which is supportive for our space,' said Alastair Munro, senior metals strategist at Marex. The dollar index sank to its lowest level since early 2022 as concerns about the future independence of the US Federal Reserve undermined faith in the soundness of the country's monetary policy. A softer dollar makes commodities priced in the US currency less expensive for buyers using other currencies. The premium for the LME cash copper contract over the three-month contract rebounded to $240 a ton from $101 on Wednesday but down from $280 on Monday, its highest since November 2021. The LME premium for buying copper tomorrow and selling it the day after surged to $98 a ton up from $48.60 per ton on Friday. While traders expect deliveries of copper into LME warehouses to ease a tight situation, they have not yet materialised. 'The market is still positioned short out of July and struggling to find offers this morning,' Munro said. Copper buying was buoyant among Chinese participants, he added, noting that long positions and open interest are rising on the Shanghai Futures Exchange. The most-traded copper contract on ShFE rose 0.6% to 79,000 yuan ($11,022.74) per ton, its highest since June 11. LME copper has held below the $9,800 level for several months and a break above it on Thursday triggered automatic buy orders, a trader said. LME copper has gained 22% since hitting its lowest level since November 2023 at $8,105 in April. US Comex copper futures climbed 3.2% to $5.13 a lb, bringing the premium of Comex over LME copper to $1,425 a ton, its highest since April 28. Higher US copper prices are based on expectations of US tariffs being imposed on the metal, triggering a flow of metal to Comex warehouses. Among other metals, LME aluminium rose 0.5% to $2,577 a ton, lead added 0.5% to $2,041.50, nickel gained 1% to $15,230, zinc climbed 2.2% to $2,764.50, while tin rose 1.4% to $33,640. Zinc hit its highest since May 14, while tin touched its strongest since April 8.
Zawya
26-06-2025
- Business
- Zawya
Copper pushes to near three-month peak on weak dollar, speculators
Copper prices jumped to their highest in nearly three months on Thursday, propelled by a weak dollar, concerns about supply and buying by speculators after key technical levels were broken. Three-month copper on the London Metal Exchange gained 1.6% to $9,867 a metric ton by 1000 GMT, its strongest since March 28. "What is key for us is dollar weakness and that is trending lower, which is supportive for our space," said Alastair Munro, senior metals strategist at Marex. The dollar index sank to its lowest since early 2022 as concerns about the future independence of the U.S. Federal Reserve undermined faith in the soundness of the country's monetary policy. A softer dollar makes commodities priced in the U.S. currency less expensive for buyers using other currencies. The premium for the LME cash copper contract over the three-month rebounded to $200 a ton from $101 on Wednesday but down from $280 on Monday, its highest since November 2021. While traders expect deliveries of copper into LME warehouses to ease a tight situation, they have not yet materialised. "The market is still positioned short out of July and struggling to find offers this morning," Munro said. Copper buying was buoyant among Chinese participants, he added, noting that long positions and open interest are rising on the Shanghai Futures Exchange. The most-traded copper contract on ShFE rose 0.6% to 79,000 yuan ($11,022.74) per ton, its highest since June 11. LME copper has held below the $9,800 level for several months and a break above there on Thursday triggered automatic buy orders, a trader said. LME copper has gained 22% since hitting its lowest since November 2023 at $8,105 in April. U.S. Comex copper futures climbed 2.7% to $5.05 a lb, bringing the premium of Comex over LME copper to $1,277 a ton, its highest since April 28. Higher U.S. copper prices are based on expectations of U.S. tariffs being imposed on the metal, triggering a flow of metal to Comex warehouses. Among other metals, LME aluminium rose 0.5% to $2,575 a ton, lead gained 0.6% to $2,044, nickel added 0.8% to $15,190, zinc climbed 1.4% to $2,743.5, while tin rose 0.6% to $33,400. ($1 = 7.1670 Chinese yuan ) (Reporting by Eric Onstad Editing by Frances Kerry)
Business Recorder
23-06-2025
- Business
- Business Recorder
Aluminium hits three-month highs after US airstrikes on Iran
LONDON: Aluminium prices jumped to three-month highs on Monday as U.S. airstrikes on Iran's nuclear facilities raised the prospect of higher energy prices and disruptions to shipments of the metal from the Middle East. Energy can amount to 40-45% of aluminium smelting costs in some regions. Investor fears of an escalation in Middle East conflict and disruption to oil and gas supplies escalated as President Donald Trump warned that the U.S. could attack other targets unless a peace deal can be agreed with Israel. Benchmark aluminium was up 1.3% at $2,584 a metric ton in official rings after touching its highest since March 21 at $2,654.50. 'Middle East countries produce almost 9% of the world's aluminum,' said Alastair Munro, senior base metals strategist at broker Marex. 'If the Strait of Hormuz is blocked, that could affect shipments.' Global supplies will be further disrupted if Iran shuts the Strait of Hormuz, analysts say, because Middle East production relies on imports of aluminium raw materials bauxite and alumina. Elsewhere, the LME market was focused on large holdings of cash copper contracts and warrants - title documents conferring ownership - and premiums for near-term copper contracts. Aluminium outperforms copper on energy cost concerns amid US-Iran tensions LME data shows that one company holds a dominant position of more than 90% in copper warrants and cash contracts. The premium or backwardation for the cash copper contract over the three-month forward soared to $340 a ton on Monday, the highest since October 2022. The premium stood at only $3 a month ago. Part of the problem is the slide in copper inventories in LME-approved warehouses. Much of the copper stored on the LME has been shipped to the U.S., where prices soared after President Trump ordered an investigation into possible tariffs on copper imports. The London exchange responded on Friday by imposing restrictions on holders of large positions in near-term contracts. Three-month copper was up 0.1% at $9,641 a ton, lead rose 0.8% to $2,009, tin slipped 0.2% to $32,615 and nickel retreated 1.5% to $14,785. Zinc, production of which requires large amounts of energy, was up 1.8% at $2,677 a ton.
