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7 months ago
METALS-LME copper rises on weak dollar as electronic trade resumes
January 12, 2017 / 4:15 AM / 7 months ago

METALS-LME copper rises on weak dollar as electronic trade resumes

* LME investigating electronic trading delay, but no reason offered - traders

* US set to launch WTO complaint on China aluminium on Thurs

* Indonesia copper miners halt exports on regulation

* Coming up: eurozone industrial production for Nov at 1000 GMT (Adds detail; updates prices)

By Melanie Burton

SYDNEY, Jan 12 (Reuters) - London copper traded up half a percent on Thursday as the dollar dropped after Donald Trump failed to offer concrete stimulus plans. Electronic trade on the London Metal Exchange resumed after a five-hour delay.

Trump's first news conference since the Nov. 8 election contained no details on tax cuts and infrastructure spending, two factors that had fuelled the five-week rally in stocks and a selloff in global bond markets.

Hopes Trump would unleash waves of fiscal spending on infrastructure were a driver for copper prices to punch through the $5,000 a tonne mark late last year. The dollar fell on Thursday to the lowest since mid-December against a basket of currencies at 101.160.

A weaker dollar boosts the buying power of those paying for commodities with other currencies.

London Metal Exchange copper traded up 0.8 percent at $5,757 a tonne, paring losses from Wednesday.

The LME's electronic trading platform LMESelect reopened at 0600 GMT on Thursday after a five-hour delay. Information on what caused the outage was not available.

Freeport-McMoRan and other copper miners have halted Indonesian shipments of copper concentrates to abide by a government ban on exports of unprocessed metal ores that took effect on Thursday, a mining ministry official told Reuters.

"You'd think it (Freeport) would have normal service resuming in a few days or weeks," said analyst Daniel Morgan at UBS in Sydney.

"If we don't see some kind of resolution ... in a few weeks' time that is something that could risk the anticipated global copper supply for this year."

Traders told Reuters earlier this week that a short-term halt to exports was unlikely to disrupt markets, with smelters sufficiently stocked over Lunar New Year at month-end.

Shanghai Futures Exchange (ShFE) copper had edged down 0.1 percent to 46,980 yuan ($6,798) a tonne by 0724 GMT.

ShFE tin fell 3 percent. Shanghai zinc and lead dropped around 0.5 percent, while ShFE nickel slipped 2.3 percent.

Meanwhile, the Obama administration is expected to launch a complaint against Chinese aluminium subsidies with the World Trade Organization on Thursday, a person familiar with the matter said.

Chinese President Xi Jinping will promote "inclusive globalisation" at this month's World Economic Forum (WEF) in Davos and will warn that populist approaches can lead to "war and poverty", Chinese officials said on Wednesday.

China's National Development and Reform Commission said it had approved 23 fixed-asset investment projects worth 184.0 billion yuan ($26.53 billion) in December.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

$1 = 6.9200 Chinese yuan Reporting by Melanie Burton; Editing by Biju Dwarakanath and Christian Schmollinger

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