Copper holds near 7-month high on less aggressive Fed bet, supply woes


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BEIJING, Jan 13 (Reuters) –

Copper was little changed on Friday, hovering near a seven-month high touched in the previous session, as supply concerns and demand optimism from hopes of an easing in rate hikes by the U.S. Federal Reserve underpinned prices.

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Three-month copper on the London Metal Exchange held unchanged at $9,189 a tonne by 0156 GMT, having hit a high of $9,240 in the previous session, the strongest since June 16.

Speculation of slower interest rate hikes by the Fed increased after data showed U.S. inflation was easing.

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The dollar currently stood at a near nine-month low, making it more attractive to non-dollar buyers to buy the greenback-priced commodity.

The most-traded February copper contract on the Shanghai Futures Exchange climbed 0.4% to 68,910 yuan($10,261.03) a tonne.

Supply concerns, meanwhile, arose from Peru, the world’s second-biggest copper producer that is currently in the throes of the worst civil unrest in years.

Vandals attacked Glencore’s Antapaccay copper mine in Peru on Thursday, the country’s top mining official said, amid a deepening political crisis marked by violent protests that have broken out near major mines in the southern Andes.

Peruvian mine Minsur temporarily suspended operations at its San Rafael tin mine on Thursday, the company said, adding it took the decision in solidarity with the victims of recent protests.

LME tin rose 1% to $27,690, aluminum climbed 1.4% to $2,545.50 a tonne, lead added 0.4% to $2,200, zinc advanced 1.2% to $3,245.

SHFE tin rose 2.6% at 220,330 yuan a tonne, aluminum was up 0.9% at 18,575 yuan, zinc climbed 0.8% at 24,040 yuan, nickel rose 1.3% at 207,360 yuan.

For the top stories in metals and other news, click or ($1 = 6.7157 Chinese yuan) (Reporting by Siyi Liu and Dominique Patton; editing by Uttaresh.V)


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