Base metals prices stabilised ahead of the outcome of the latest US Federal Open Market Committee’s monetary policy meeting on Wednesday September 20.
The policy-board is not expected to raise rates tomorrow, limiting the impact it will have on the copper market. However, rising London Metal Exchange and Chicago Metal Exchange stocks are placing a significant headwind on the red metal.
"We remain bullish for copper's fundamentals overall as improving demand and supply disruptions are set to tighten the supply/demand balance," Metal Bulletin analyst James Moore said. "But the recent build in stocks does little to signal any shortage of material, as the market continues to work through ample scrap availability brought out by higher prices."
Meanwhile in precious metals, Comex gold for December settlement rose $3.10, or 0.2%, to $1,313.90 per oz.
Currency moves and data releases
- The dollar index was down 0.16% at 91.83.
- In other commodities, the Texas light sweet crude oil spot price rose 46 cents to $50.58 per barrel.
- The economic agenda is relatively light today. The EU’s July current account balance showed a slightly higher surplus of €25.1 billion ($29.9 billion). In the US, building permits in August came in at 1.3 million. Housing starts over the same period were in-line with expectations at 1.18 million.
- Import prices compared to last month rose 0.6%, an improvement over the previous figure of 0.1%.