LIVE FUTURES 06/07: Weak dollar spurs support for base metals

Base metal prices on the London Metal Exchange mostly increased on Tuesday July 6, with a tepid dollar driving the complex up.

The United States dollar index was at 92.29 on Tuesday, up 0.8 from an earlier reading on the same day, but lower than its peak of 92.76 during its late-May to early-July rally. 

The three-month LME lead price led the increase on Tuesday, up 1.2% compared to Monday’s close of $2,315 per tonne. 

A further rise in copper prices could add to bullish sentiment in the LME base metals complex, Fastmarkets analyst Will Adams, head of base metals and battery research, said.

The three-month LME copper contract traded at $9,586 per tonne, up from $9,511 per tonne at Monday’s close. 

“The move back in copper prices above $9,520 per tonne suggests the metal has put in a base on the charts and that might now encourage a move to challenge the highs that lie over $1,000 per tonne above,” Adams said. “The rest of the metals are looking more upbeat and if benchmark copper prices are now aligned, it may lead to a concerted move higher.” 

Only the aluminium three-month price declined, from $2,556 per tonne at Monday’s close to $2,551 per tonne on Tuesday. The light metal had hit an intraday high of $2,581 per tonne on Monday. 

More than 13,000 tonnes of aluminium flowed out of LME sheds, with 9,725 tonnes leaving warehouses in Port Klang Malaysia.

Other highlights:   

  • Data on Germany’s factory orders, European Union and German economic sentiment from the Zentrum fur Europaische Wirtschaftsforschung, EU retail sales and two sets of US services PMI will be released later on Tuesday.