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Base metals fall on firm dollar, weak China information

Costs of nonferrous metals fell on Tuesday, weighed down by a firm dollar and demand worries, following weak manufacturing information from leading customer China.

Three-month copper on the London Metal Exchange fell 0.7% to $9,116.50 per metric heap by 0628 GMT, while the most-traded October copper agreement on the Shanghai Futures Exchange dropped 1% to 73,090 yuan ($ 10,265.02) a heap.

The dollar held near to a two-week high, making greenback-priced metals more pricey to holders of other currencies.

China's production activity sank to a six-month low in August, official data showed. The sector represent a large portion of metals need and is one of the major signs for the health of the Chinese economy.

Products are getting smoked for the 2nd day in a. row, a trader stated, associating the drop to generic selling and. bad Global Getting Managers' Indices. There's no strong. expectations of a recovery in need, the trader added.

( I am) awaiting either stimulus or rate cuts. It's a. longer-term view. Once rate cuts take place - and if they do so. fast enough - nations can begin launching stimulus packages,. the trader stated.

LME aluminium fell 0.7% to $2,408 a load, nickel. edged down 0.2% at $16,595, tin reduced 0.2% to. $ 31,335 while lead was almost flat at $2,059.50.

LME zinc fell 0.6% to $2,823 a heap. It climbed more. than 8% in August, its finest monthly gain since April, supported. by supply issues.

Disappointing China information, particularly from the building. sector, will likely lead to bullish zinc financiers leaving and. more rate declines in the next couple of weeks, said Sandeep Daga,. a director at Metal Intelligence Centre.

SHFE aluminium fell 0.6% to 19,540 yuan a lot, zinc. dropped 1% to 23,595 yuan, lead edged down. 0.3% at 17,305 yuan, tin dropped 1.9% to 255,270 yuan. and nickel alleviated 0.1% to 128,710 yuan.

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(source: Reuters)