Copper, lead and zinc near three-month highs

LONDON — Copper, lead and zinc prices hit near three-month highs on Wednesday boosted by sharp falls in the dollar, signs of tighter supply and optimism over Chinese demand, although worries about US economic growth capped the upside.

The US dollar touched its lowest level against the euro in a year on Wednesday after hawkish comments from the head of the Bank of England fueled bets on tighter monetary policy in Europe.

A weak dollar makes dollarpriced metals cheaper for holders of other currencies.

In the United States, concerns persisted about poor economic readings and doubts over President Donald J. Trump’s ability to push through tax cuts and spending increases.

Still, metals were bid thanks to signs that supply is shrinking as exchange inventories fall and amid indications of solid demand in China, the world’s largest metals consumer.

“As we head into summer, we expect more capacity reductions in China to meet environmental restrictions, and we think consumers are buying stock ahead of that,” said SP Angel analyst John Meyer.

“The market got ahead of itself in the first quarter with ( hopes for) Trump’s infrastructure plans, that’s not happening now but, against that, China growth is ok.”

London Metal Exchange ( LME) copper ended up 0.40% at $ 5,881 a ton, having struck its highest since early April at $5,881.50.

LME data showed headline copper stocks down to 248,675 tons, having slid 30% since early May, and on-warrant or available stock levels have shed 40% over the period.

Zinc ended down 0.50% at $2,734 a ton, having hit its highest since early April at $2,764, while lead closed up 0.40% at $2,296, having reached its strongest since early April at $2,302.

Cash zinc traded at a premium of $0.50 a ton to the three-month price, a high since early May and indicating tight nearby supply. Cash lead traded at a discount of just $13.01 to the three month price, near its narrowest since mid-May.

China on Tuesday appointed a new environment minister who has promised a “protracted battle” to clean up the nation’s notoriously polluted air, water and soil.

Among other industrial metals, aluminum ended up 0.70% at $ 1,896 a ton, nickel closed up 0.10% at $ 9,270 while tin ended up 0.90% at $ 19,445 a ton. —