LONDON, Dec 13 (Reuters) – Copper rose on Wednesday as prices extended a correction from last week’s sharp fall, but moves were muted as the wider markets steadied ahead of an expected interest rate increase from the U.S. Federal Reserve later. Global shares stabilised within a whisker of another record high, while the dollar held near Tuesday’s one-month peak as the Fed geared up to raise rates for the third time this year.Copper plunged 4 percent on Dec. 5, its biggest one-day drop in two years. While it has since recovered some ground, it has still not recouped all of those losses. Some upbeat data out of China last week had helped allay concerns over Chinese demand, Julius Baer analyst Carsten Menke said, while moves on Comex had also improved the technical picture for the metal. Usually after such a steep slide, you have some bargain hunters coming back into the market, causing a bit of a counter move, and I think that is what we’re seeing right now,” he said. “But in my view, it should reverse sooner rather than later, because fundamentally it does not look that strong.” Tin slid to a six-month low after breaking through key chart support, meanwhile. LME COPPER: London Metal Exchange copper was up 0.9 percent at $6,724 a tonne at 1055 GMT. COPPER TECHNICALS: LME copper may rise to $6,737 a tonne after breaking above resistance at $6,670, Reuters technical analyst Wang Tao said. The metal has broken a falling trendline which signals a further gain from current levels. U.S. INTEREST RATES: The Federal Reserve is widely expected to raise interest rates on Wednesday and may give its strongest hint yet on how the Trump administration’s tax overhaul could affect the U.S. economy. TIN: LME tin prices fell for a second day, breaking through their late October low at $19,020 to hit their weakest since early June at $18,685 a tonne. They were later down 2 percent at $18,780 a tonne. ZINC, LEAD PRICES: LME zinc was up 0.3 percent at $3,166.50 a tonne, while lead was flat at $2,517.50.  ZINC: Miner and trader Glencore said next year’s zinc production would be roughly steady at just over one million tonnes, although it will start to ramp up some capacity. LEAD: Seasonally strong demand from battery makers, tight supplies caused by mine shutdowns and dwindling inventories in London Metal Exchange warehouses are expected to sustain lead prices, which recently hit six-year highs. OTHER METALS: LME aluminium was down 0.1 percent at $2,014 a tonne, while nickel was 0.9 percent higher at $11,165 a tonne.

Cookie Consent Banner von Real Cookie Banner