MARKET OVERVIEW - Base Metals Rise as Dollar Weakens

Forex - Base metal prices rose as the US dollar weakened, but gains were limited by concerns over demand outlook.

Three-month copper on the London Metal Exchange (LME) climbed 1.4% to $9,089.50 per ton at 05:29 AM Turkish time, while the January copper contract on the Shanghai Futures Exchange (SHFE) rose 0.6% to 74,380 yuan per ton ($10,268.94).

The dollar fell as investors speculated that the appointment of the US Treasury Secretary would instill confidence in the bond market, pulling yields lower and somewhat reducing the dollar's exchange rate advantage.

Despite today's gains, copper prices on both exchanges are poised for the second consecutive monthly loss due to disappointment over the stimulus measures announced by China so far and concerns that President-elect Donald Trump's imposition of tariffs on China would harm trade flows and economic growth.

While copper stocks on the SHFE declined during China’s peak consumption season, stocks at LME and COMEX warehouses saw little change, reflecting weak demand outside of China.

On the LME, aluminum was quoted at $2,653 per ton, up 1.1%, nickel increased 0.3% to $16,025 per ton, zinc rose 0.9% to $2,994 per ton, lead moved up 0.6% to $2,033.50 per ton, and tin was up 0.7% at $29,125 per ton.

On the LME, cash lead traded at $26.94 per ton lower than its three-month contract, marking the smallest discount seen since August 23, indicating tightening nearby supply.