Stability when the USD rises

The three-month copper contract CMCU3 on the London Metal Exchange (LME) rose 0.2%.

Three-month copper futures on the London Metal Exchange (LME) CMCU3 rose 0.2% to $9,817.50 per ton. The metal, used in electricity and construction, had reached $9,913, its highest level since July 15.

China's central bank has lowered the cost of medium-term loans for banks, a day after announcing plans to cut borrowing costs, inject more money into the economy , and ease the burden of mortgage repayments for households.

The US dollar strengthened, making metals less attractive to buyers using other currencies, and the Chinese yuan retreated from its earlier gains.

Dan Smith, research director at Amalgamated Metal Trading (AMT), said that Beijing's measures will not be enough to solve all the problems in the Chinese economy, despite significant moves to support the real estate market.

At the same time, current demand in China is quite good, at least for copper and aluminum, and supply for both metals is very tight, he added.

With the start of the US interest rate easing cycle and China's stimulus measures, AMT expects copper, aluminum, zinc, and tin prices to rise in Q2 2025. Lead and nickel prices are likely to fall due to weaker fundamentals, the company added.

According to the International Nickel Study Group (INSG), the global nickel market surplus will increase to 170,000 tonnes by 2024 from 167,000 tonnes in 2023. Next year, INSG expects the surplus to be 135,000 tonnes amid growth in the stainless steel industry in China and Indonesia, but also slower-than-expected growth in nickel use in electric vehicle batteries.

LME aluminum CMAL3 fell 0.7% to $2,537/tonne, zinc CMZN3 fell 0.6% to $2,991, lead CMPB3 rose 0.7% to $2,098.50, tin CMSN3 fell 2.4% to $31,855 and nickel CMNI3 rose 0.2% to $16,735.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-26-9-on-dinh-khi-dong-usd-tang.html