HANOI, April 20 (Reuters) - Copper prices rose back towards
their highest in a decade on Tuesday, as a weaker dollar made
greenback-denominated metals cheaper and more attractive to
holders of other currencies.
Three-month copper on the London Metal Exchange rose
as much as 1.1% to $9,483 a tonne, flirting with the
$9,617-a-tonne level hit in February which was its highest since
August 2011. By 0716 GMT it was at $9,426.50, up 0.5%.
The most-traded June copper contract on the Shanghai Futures
Exchange rose as high as 69,750 yuan ($10,737) a tonne,
not far from its February peak of 71,080 yuan a tonne, which was
its highest since March 2011. It closed up 1.1% at 69,450 yuan a
The dollar wallowed near a six-week low against its
peers as U.S. bond yields hovered below a 14-month peak touched
"Copper is riding the wave of the U.S. dollar debasement in
value," said a Singapore-based metals trader, but noted that
"physical participants are not biting (at current prices)".
"Watch the inventories. Already there's lending guidance on
copper," said the trader, referring to the dominant warrant
holders in LME copper short-term contracts. <0#LME-WHC>
One participant currently holds 50-80% of LME copper
* LME aluminium rose 0.3% to $2,336.50 a tonne, zinc
advanced 0.2% to $2,852 a tonne and tin fell
0.4% to $26,600 a tonne.
* ShFE aluminium increased 0.1% to 18,095 yuan a
tonne, nickel dropped 0.8% to 120,960 yuan a tonne and
lead increased 1.6% to 15,300 yuan a tonne.
* The global nickel market surplus expanded to 6,200 tonnes
in February from a downwardly revised 3,500 tonnes in the
previous month, International Nickel Study Group data showed.
* China's primary aluminium imports jumped over 15 times
year-on-year in March on robust demand and a favourable price
spread between overseas metal and Shanghai prices.
* Russian metals producer Nornickel has lifted its
2021 production forecast slightly as one of its mines is
resuming work ahead of schedule after flooding.
($1 = 6.4963 yuan)
(Reporting by Mai Nguyen; Editing by Shounak Dasgupta, Shailesh
Kuber and Jan Harvey)