LME Market Report: Profits Sell, Base Metals Drop

London, December 14 news: The London Metal Exchange (LME) base metals generally fell on Tuesday, traders said that a stronger US dollar triggered profit-taking sales. The dollar rose against the euro and the yen Tuesday, due to the Federal Reserve Board (FED) expects investors to lock in profits against other currencies before it announces its fifth interest rate increase this year. One trader said, "The dollar opened lower, incentivising some short-covering buying of copper; but with the dollar Rising, metal prices turned lower.” The Fed is expected to announce a rate hike of 25 basis points. This will make US interest rates higher than the current 2% euro zone rate for the first time since early 2001. The Fed interest rate statement will be announced at 1915GMT. In the final session, the euro/dollar reported 1.3272 US dollars, down 0.3% the same day, last week hit a record high of 1.3470. Three-month copper closed at 2,968 US dollars per ton, compared with Monday's composite trading fell by 2 US dollars. Three-month early copper plate Rising to a high of 2,977.50 U.S. dollars, benefited from short covering and low inventory levels. At midday, copper prices continued to climb to a high of 2,992.50 U.S. dollars. The spot/three-month inverse spread widened to $130/135, which was less than $100 last week. Spot/January's reverse spread was $58 and closed at $53 on Monday. LME's 14-day copper inventories fell by 475 tons to 54,850 tons. Copper stocks in London are expected to decline further. An analyst said, “After entering the New Year, the reversal of the spread may be eased, and the price may once again weaken, but this will largely depend on the trend of the US dollar.” Three-month aluminum closed down 17 US dollars at 1,795 US dollars. It gained an intraday high of 1,814.50 US dollars, and the trading volume was scarce. LME14 aluminum stocks fell by 2,225 tons to 704,950 tons. Analysts pointed out that the aluminum needs to break through the resistance at 1,820/30 to sustain the recent rally. In the early session, buyers showed buying, but the buying failed to continue. Therefore, LME three-month zinc fell from a high of $1,166 to Below $ 1,150. Zinc fell 9 US dollars to 1,154. Lead fell by 7 U.S. dollars to 937 U.S. dollars, and tin fell from 8,850 U.S. dollars to 8,780 U.S. dollars. Nickel fell by 75 U.S. dollars to 12,900 U.S. dollars. Source: China International Futures Brokerage Co., Ltd.