HANOI, June 22 (Reuters) – Copper prices advanced on Tuesday as the dollar paused before US Federal Reserve Chairman Jerome Powell’s much-anticipated testimony, making greenback-priced metals cheaper for holders of other currencies.
The dollar has risen sharply since the Fed reported earlier-than-expected interest rate hikes last week, but fell on Monday as markets turned to Powell’s testimony for further information.
Three-month copper on the London Metal Exchange rose 0.1% to $ 9,192 a tonne at 07:13 GMT, while the most-traded copper contract in July on the Shanghai Futures Exchange closed up 0 , 9% to 67,350 yuan ($ 10,408.62 per ton.
“If the price (ShFE) stays below 70,000 this week, downstream buying could still be relatively active, which could have some supporting effect on copper prices,” Huatai Futures said in a note.
“But on the other hand, the pressure on the supply side is relatively high, mainly due to the pressure from the sale of state reserves and the continued rebound in processing fee prices,” said the company, adding that copper is expected to be volatile in the upcoming sessions.
* The world market for refined copper posted a deficit of 19,000 tonnes in March, compared to a surplus of 108,000 tonnes in February, said the International Copper Study Group.
* The global nickel market deficit narrowed to 15,600 tonnes in April from 17,100 tonnes in March, according to data from the International Nickel Study Group.
* Long speculative long copper ShFE fell to 5.1% from open interest on Monday, the lowest since Nov. 19, and was down from 7.3% on Friday, according to data from Marex Analytics.
* LME nickel rose 1.8% to $ 17,765 per tonne and ShFE nickel climbed 3.6% to 132,750 yuan per tonne. Aluminum ShFE rose 1.6% to 18,625 yuan per tonne and ShFE tin rose 1.9% to 202,350 yuan per tonne.
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$ 1 = 6.4706 yuan Reported by Mai Nguyen, edited by Sherry Jacob-Phillips, Aditya Soni