BEIJING, Jan 10 (Reuters) - London copper prices shrugged
off early losses to rise for a second session on Thursday, as a
weaker dollar enabled the metal to hold gains made from optimism
over the latest round of U.S.-China trade talks.
A weaker greenback makes dollar-denominated metals cheaper
for holders of other currencies and can support prices.
However, prices in top consumer China failed to sustain the
momentum, with Shanghai copper slipping 0.1 percent.
Recent transactions in the refined and scrap copper markets
have been ordinary, consistent with the off-season, and
"fundamentals cannot support the copper price," Jinrui Futures
wrote in a note.
Instead, prices for copper, an economic bellwether, will
move higher on improving macro sentiment and lower on weakening
sentiment, the Chinese brokerage added.
FUNDAMENTALS
* LME COPPER: Three-month copper on the London Metal
Exchange was up 0.4 percent at $5,982.50 a tonne, as of
0440 GMT, after ending 0.9 percent higher on Wednesday. The
most-traded March copper contract on the Shanghai Futures
Exchange was down 0.1 percent at 47,510 yuan
($6,996.54) a tonne by the end of the morning session.
* TRADE: China's commerce ministry said trade talks with the
United States this week were extensive and detailed, and
established a foundation for the resolution of each others'
concerns.
* USD: The dollar weakened versus major peers due to
growing expectations the Federal Reserve will pause its rate
tightening cycle this year.
* OTHER METALS: The LME complex was broadly higher, with
nickel up 0.6 percent and tin, which rose above
$20,000 for the first time since late June on Wednesday, adding
0.4 percent to $20,140 a tonne. Zinc fell 0.3 percent.
* TIN: "The price rise is likely to have been triggered by
concerns about supply, for Indonesia – the world's largest tin
exporter – has been exporting considerably less tin since
October," Commerzbank said in a note.
* ALUMINA: Norwegian aluminium-maker Norsk Hydro
aims to resume full production at its Alunorte alumina plant in
Brazil within weeks or months, although the process still
remains uncertain.
