METALS-Copper rises on weak U.S. dollar, upbeat broader markets

(Updates prices)

HANOI, Jan 4 (Reuters) - Copper and most other industrial metals rose on Monday as a weaker U.S. dollar boosted the appeal of the greenback-priced metals, with sentiment aided by gains in the commodities markets on hopes of a recovery in the global economy.

Three-month copper on the London Metal Exchange climbed 1.9% to $7,910 a tonne by 0716 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange ended up 0.3% to 58,160 yuan ($9,001.01) a tonne.

LME nickel jumped as much as 5% to $17,450 a tonne, a two-week high, while zinc advanced 1.1% to $2,781.50 a tonne. ShFE nickel climbed 3.1% to 128,210 yuan a tonne while ShFE lead was up 2% to 15,045 yuan a tonne.

“The end of year rebalancing — selling the winners, buying the laggards — is over. Metals are also repricing themselves higher after taking the cue from bitcoin. They are also supported by a weaker dollar,” a Singapore-based trader said.

The U.S. dollar kickstarted the new year by slipping broadly, while bitcoin hovered near a record high.

Other commodities, ranging from iron ore to oil and grains, also gained as optimism from vaccine rollouts and global fiscal support underpinned their prices.

“However, I won’t be chasing this the GSCI and BCOM indices are due to start their rebalancing in the next five days when they will be selling copper,” the trader said, referring to the S&P/Goldman Sachs Commodity Index and the Bloomberg Commodity Index.


* China’s Caixin/Markit Manufacturing Purchasing Managers’ Index was at 53.0 in December, indicating factory activities growth but down from November’s 54.9.

* China’s central bank issued a regulation last week to cap property loans by banks to guard against any over-lending to the property sector.

* Chinese electric vehicle battery firm GEM Co Ltd aims to double its stake to 72% in a nickel at Indonesia’s Morowali Industrial Park.

* For the top stories in metals and other news, click or ($1 = 6.4615 yuan) (Reporting by Mai Nguyen, Editing by Sherry Jacob-Phillips and Uttaresh.V)