Aug 27 (Reuters) - Three-month copper contract on the
London Metal Exchange edged higher on Wednesday,
supported by a pickup in Chinese export orders, although a
slightly stronger dollar limited further upside.
The three-month contract on the LME edged up 0.04%
to $9,840.5 per metric ton by 0234 GMT, while the most-traded
copper contract on the Shanghai Futures Exchange eased
0.15% to 79,340 yuan ($11,092.00) a ton.
Chinese fabricators have indicated a recent uptick in export
orders. Export-driven demand was strong in the first half of the
year, as manufacturers boosted output ahead of U.S. tariffs, but
dried up as the levies came into effect. Any stabilisation in
demand amid elevated trade tensions bodes well for the sector in
the short term, said analysts from ANZ.
The USD struggled to gain ground, although the dollar index
edged marginally higher to 98.27, after falling 0.24% in the
previous session following U.S. President Donald Trump's move to
fire Federal Reserve Governor Lisa Cook, which boosted
expectations of U.S. interest rate cuts.
A stronger U.S. dollar makes greenback-priced metals more
expensive for holders of other currencies, which can dampen
demand and weigh on prices.
Elsewhere, Indonesian sovereign wealth fund Danantara plans
to access $8.3 billion in investment funds in 2025 to develop a
nickel processing hub in partnership with Chinese battery and
mineral recycler GEM.
Indonesia is the world's largest nickel producer.
Among other London metals, aluminium edged 0.09%
higher to $2,640.5 a ton, nickel gained 0.33% to
$15,335, lead edged up 0.18% to $1,991.5, tin
climbed 0.31% to $34,305, and zinc rose 0.02% to $2,814.
SHFE aluminium increased 0.53% to 20,840 yuan,
nickel gained 1.58% to 122,250 yuan, tin
climbed 1.01% to 272,070 yuan, and zinc rose 0.18% to
22,345 yuan, while lead dipped 0.03% to 16,910 yuan.
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DATA/EVENTS (GMT)
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($1 = 7.1529 Chinese yuan)