February 22, 2018 / 1:54 AM / 3 months ago

METALS-London metals sag on dollar, Shfe weakens on holiday return

MELBOURNE, Feb 22 (Reuters) - London metals fell on Thursday after U.S. policymakers backed the need for more rate rises, pushing up the dollar and putting pressure on metals as trading in Shanghai resumed after a week-long break.

FUNDAMENTALS

* LME: London Metal Exchange copper fell 1.2 percent to $7,033 a tonne by 0120 GMT, having ended up 0.4 percent in the previous session. Support is seen at the 30-day moving average of $6,826 a tonne.

* SHFE: Shanghai Futures Exchange copper pared early gains of 1 percent to trade last at 52,800 yuan ($8,323) a tonne, still up half a percent. Shfe nickel also held a 1 percent gain but the rest of the metals were flat or lower.

* DOLLAR: The dollar rose to a more than one-week peak on Wednesday, extending its recovery from last week, helped by higher short-term Treasury yields, and as minutes of Federal Reserve’s January meeting showed policymakers confident in the need to keep raising interest rates.

* DEMAND: Germany’s vibrant domestic demand and rising orders from abroad are boosting growth in Europe’s largest economy, the finance ministry said on Thursday, adding that Berlin expects the broad-based upswing to continue.

* COBALT: Apple Inc is talking to major cobalt producers to secure supplies of the material vital for the lithium-ion rechargeable batteries that power its mobile phones, three cobalt industry sources said.

* COPPER SUPPLY: Southern Copper Corp will invest about $2.5 billion in Peruvian copper project Michiquillay, with production of 225,000 tonnes of copper per year expected to start in 2015, the company said in a statement on Wednesday.

* GLENCORE: Glencore Chief Executive Ivan Glasenberg hailed the group’s results as its “strongest on record” on Wednesday, bolstered by a recovery on commodity markets and said it had the assets to meet future demand including from electric vehicles.

* OTHER METALS: LME nickel and zinc fell more than 2 percent, while aluminium and lead shed around 1 percent.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian shares slipped on Thursday as the risk of faster hikes in U.S interest rates lifted short-term Treasury yields to the highest in almost a decade and boosted the dollar.

DATA AHEAD (GMT)

0745 France Business climate Feb

0900 Germany Ifo business climate Feb

0930 UK GDP 2nd release Q4

1230 European Central Bank releases minutes of January meeting

1330 U.S. Weekly jobless claims

1500 U.S. Leading index Jan

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin

ARBS ($1 = 6.3438 Chinese yuan renminbi)

Reporting by Melanie Burton; editing by Richard Pullin

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