BEIJING, Nov 29 (Reuters) - Copper led most base metals
higher on Thursday, tracking a rise in equities after investors
took comments from the U.S. Federal Reserve chair as a sign the
central bank's interest rate hike cycle is drawing to a close.
Copper prices were also lifted on worries over supply as an
smelter in Indonesia declared force majeure on some deliveries
to customers.
Fed Chair Jerome Powell said on Wednesday that the bank's
policy rate was now "just below" estimates of a level that
neither brakes nor boosts a healthy U.S. economy.
Higher interest rates mean higher borrowing costs, which can
reduce economic activity and consumption, and see capital flow
into assets with higher yields than commodities.
Trade uncertainty continues to weigh ahead of a meeting
between U.S. President Donald Trump and Chinese counterpart Xi
Jinping at the G20 summit in Argentina, ANZ wrote in a note.
"Investors will be looking for progress at the Trump-Xi
meeting this weekend, after it was reported that President Trump
is weighing up more tariffs," it said.
FUNDAMENTALS
* COPPER: The most-traded January copper contract on the
Shanghai Futures Exchange rose as much as 1.8 percent
to 49,820 yuan ($7,176.61) a tonne, the highest since Nov. 23,
before closing up 1.2 percent on 49,560 yuan a tonne.
Three-month copper on the London Metal Exchange
climbed 0.7 percent to $6,240 a tonne, as of 0752 GMT.
* INDONESIA: Japan's Mitsubishi Materials on
Thursday said that its Indonesia copper smelting unit, PT
Smelting, has declared force majeure on deliveries of products
to some customers as maintenance at its plant in the country had
been extended.
* USD: The dollar index was down 0.1 percent after
Powell's remarks, making dollar-denominated metals cheaper for
holders of other currencies.
* VEDANTA: An Indian court-appointed panel said on Wednesday
that there were insufficient grounds to permanently close
Vedanta Ltd's copper smelter and a government
decision to shut it amounted to administrative overreach.
* CHILE: BHP's Spence copper mine was operating normally
again following a union strike announced earlier on Wednesday,
the company said.
* OTHER METALS: Shanghai zinc snapped a seven-day
losing run, closing up 0.9 percent, while lead added
0.7 percent. Aluminium shed 0.3 percent and remains
near a two-year low amid less stringent winter cuts in top
producer China.
* ALUMINIUM: The Russian government could buy up to 50,000
tonnes of aluminium for the state reserve, a government decree
showed on Wednesday, in a move that would support sanctioned
Russian aluminium producer Rusal.
* SHFE GLITCH: ShFE prices failed to move in the first 22
minutes of the afternoon session. Traders said they were unable
to carry out transactions before trading returned to normal.
