Copper rises as dollar slips, China eases COVID curbs

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Copper extended gains to a one-week high on Monday, supported by a weaker dollar and hopes that the easing of COVID-19 restrictions in top consumer China would revive demand for the metals.

Nickel on the Shanghai Futures Exchange jumped more than 6% to a three-week high.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange was up 0.6% at $9,515 a tonne by 0142 GMT, after hitting its highest since May 23 at $9,549 in early Asian trade.

* The most-traded July copper contract in Shanghai rose 0.4% to 72,050 yuan ($10,785.93) a tonne.

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* Shanghai nickel jumped 6.2% to 210,000 yuan a tonne, its highest since May 6.

* The dollar nursed last week’s losses on Monday and was headed for its first monthly drop in five months, as investors have scaled back bets that rising U.S. rates will spur further gains and as fears of a global recession have receded a little.

* A weaker greenback makes metals priced in dollars cheaper for holders of other currencies.

* Shanghai said on Sunday “unreasonable” curbs on businesses will be removed from June 1, as it looks to lift its COVID-19 lockdown, while Beijing reopened parts of its public transport as well as some malls and other venues as infections stabilized.

* Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 23.7% from last Friday, the exchange said on Friday.

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MARKETS NEWS

* Asian stocks followed Wall Street higher on Monday, while the dollar was pinned near five-week lows as investors wagered on an eventual slowdown in U.S. monetary tightening, albeit after sharp hikes in June and July.

DATA/EVENTS (GMT)

0900 EU Consumer Confidence Final May

1200 Germany CPI Prelim YY May

1200 Germany HICP Prelim YY May

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

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 = 6.6800 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)