Most base metals gain on softer dollar, China property hope
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Most base metals prices climbed on Thursday, buoyed by funds buying amid a softer dollar and hopes of a rebound in China's property sector.
Three-month copper on the London Metal Exchange (LME) was up 1.4% at $10,358.50 per metric ton, as of 0734 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) closed 0.8% higher at 82,310 yuan ($11,406.60) a ton.
The dollar skidded to multi-month lows after U.S. core inflation hit its slowest in three years, pulling forward expectations for a U.S. rate cut and making greenback-priced metals cheaper to holders of other currencies.
Prices of base metals have been lifted by inflows of funds betting on supply disruptions and an increasing need to use the metals in the green energy sectors, as well as on hopes of rate cuts.
"The inflation story is not yet destroyed. I still think we will see more fund flows coming into the commodities complex," said a trader.
Another trader pointed to a Bloomberg News report that China is considering a plan for local governments nationwide to buy millions of unsold homes, a move that could boost liquidity in the country's troubled real estate sector.
"It's quantitative easing in the Chinese way," the second trader said.
Still, higher copper prices - up by around a fifth so far this year - have hurt physical demand. Importers in top consumer China now get a discount of $2 a ton to take copper in, compared with a premium of more than $100 a ton last December. <SMM-CUYP-CN>
LME aluminium increased 0.6% to $2,616 a ton, nickel rose 0.6% to $19,600, lead was up 0.2% at $2,274.50, tin jumped 0.6% to $33,600, while zinc fell 0.1% to $2,974.50.
SHFE aluminium climbed 1.4% to 20,755 yuan a ton, nickel increased 1.7% to 146,620 yuan, lead rose 0.1% to 18,635 yuan while tin dipped 0.1% to 273,520 yuan and zinc was down 0.5% at 23,600 yuan.
