LONDON, Nov 23 (Reuters) - Copper prices rose in London on Thursday as the U.S. currency weakened, supporting demand for the dollar-priced metal from buyers using Chinese yuan and other currencies.
Three-month copper on the London Metal Exchange rose 0.7% to $8,409.5 per metric ton by 1732 GMT.
Copper, used in power and construction, is up just 0.5% so far this year due to the patchy post-pandemic recovery of demand in China, the world's largest metals consumer, and concerns about economic growth elsewhere. The downturn in euro zone business activity eased in November but remained broad-based.
"The rise in the yuan against the dollar has supported
Chinese traders' purchasing power in the international market,
visible in the Yangshan premium's
"Some front running ahead of a new wave of (China's) property stimulus is also supporting buying," he added. China's government advisers are calling for a steady growth target in 2024 and more fiscal stimulus, Reuters reported on Wednesday.
Meanwhile, the discount for near-term delivery versus the
LME three-month copper contract
On the technical front, copper is facing resistance from the 200-day moving average at $8,459.
The dollar index was last down 0.1%. With markets shut in Japan and the United States, currencies traded with some volatility, as liquidity was thinner than usual.
LME nickel was up 0.9% at $16,585, stepping away from $16,280, its lowest since April 2021, touched earlier in the session. Nickel is down 45% so far this year, making it the worst performer across LME base metals, as rising supply in Indonesia creates a global surplus.
Aluminium edged up 0.2% to $2,222, zinc rose 2.0% to $2,541.8, lead fell 0.3% to $2,214.5 and tin lost 1.5% to $24,300. (Reporting by Polina Devitt in London; additional reporting by Mai Nguyen in Hanoi; Editing by Mark Potter, Kirsten Donovan)
