Updates prices, adds quotes
Nov 7 (Reuters) – Most base metals pricesin London declined on Tuesday as a firm dollar, buoyed by inflation risk, made the greenback-priced metals more expensive to holders of other currencies.
Three-month copper on the London Metal Exchange (LME) CMCU3 fell 0.6% to $8.192 per metric ton by 0639 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) <SCFcv1> was almost flat at 67,460 yuan ($9,264.57) a ton.
The dollar used to be steadyon Tuesday.
“Metals are down because of a stronger dollar, which came after rate hike expectation was re-calibrated higher again last night,” said a metals trader.
Federal Reserve Bank of Minneapolis President Neel Kashkari said on Monday that the US central bank likely has more work ahead or it to control inflation.
China’s exports contracted at a faster pace in October, while imports unexpectedly grew, in a mixed set of indicators that showed China faces persistent risks despite a recent improvement in domestic demand.
LME aluminum CMAL3 declined 0.6% to $2,274 a ton, nickel CMNI3 shed 1.5% to $18.175zinc CMZN3 decreased 0.8% to $2,553.50lead CMPB3 fell 0.6% to $2,166.50, while tin CMSN3 eased 0.2% to $24.610.
SHFE nickel SNIcv1 solves 1.1% to 141,450 yuan a ton, lead SPBcv1 fell 0.7% to 16,505 yuan, while tin SSNcv1 advanced 0.5% to 208,630 yuan.
SHFE aluminum SAFcv1 rose as much as 1.1% to 19,370 yuan a ton, its highest since Sept. 28, on supply worries in China’s Yunnan province where smelters are cutting back production on lower hydropower resources in the dry season.
Some zinc smelters in Yunnan have also received notification about power rationing, which could impact the metal’s output, said Huatai Futures said in a report.
SHFE zinc SZNcv1 hit its highest since Oct. 9 at 21,780 yuan a ton.
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($1 = 7.2815 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Sohini Goswami)
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