By Peter Hobson
LONDON, Oct 6 (Reuters) - Copper registered its largest
weekly gain since late August, underpinned by expectations of
strong demand from top consumer China, though a strengthening
dollar capped price rises.
Benchmark copper on the London Metal Exchange ended
0.5 percent down at $6,667 a tonne after peaking at $6,724, the
highest since Sept. 12.
The metal used in power and construction has risen more than
20 percent this year and was on track for a 2.9 percent weekly
A deficit in the global refined copper market in the last
three months of the year would keep prices high, said ABN AMRO
analyst Casper Burgering.
"The base case for copper remains solid ... There are no
indications that demand will slow," he said, predicting prices
at $6,800-$6,850 by the end of the year.
VOLUMES: Trading activity was low with Chinese markets
closed on the last day of the country's Golden Week holiday.
GERMAN FACTORIES: German industrial orders bounced back in
August, rising more than expected on strong foreign demand.
DOLLAR: The U.S. currency was set for a fourth consecutive
week of gains, helped by expectations of a U.S. interest rate
rise in December. A stronger dollar makes industrial metals more
expensive for holders of other currencies, potentially dampening
PAYROLLS: U.S. employment fell in September because of the
impact of Hurricanes Harvey and Irma, but the unemployment rate
and wage growth suggested an improving labour market.
COPPER TECHNICALS: Support was around $6,580-$6,600 with
resistance at $6,775-$6,800, said brokers Marex Spectron in a
note. The 50-day and 21-day moving averages were both around
$6,550 a tonne.
LME ZINC: Three-month zinc closed 1.6 percent down
at 3,235 a tonne, having reached a 10-year high of $3,308.75 on
SUPPLY: Zinc prices have risen more than 26 percent this
year as a Chinese crackdown on polluting industry curbed output,
with inventories in LME warehouses dropping to their lowest
since 2009. <MZNSTX-TOTAL>
SPREAD: A shortage of immediately available metal in LME
warehouses pushed the premium for LME cash zinc over the
three-month contract to $65.50 a tonne, close to last month's
10-year high of $66. <MZN0-3>
PRICES: Three-month aluminium ended 0.8 percent down
at $2,154 a tonne while nickel finished with a 0.6
percent gain at $10,600. Tin fell by 1.9 percent to
$20,550 by the close, with lead finishing 2.3 percent down at
(Additional reporting by James Regan and Maytaal Angel; Editing
by Elaine Hardcastle and David Goodman)
First Published: 2017-10-06 03:54:49
Updated 2017-10-06 18:29:11
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