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Copper Falls as Dollar Firms on Higher U.S. Yields

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HANOI, March 19 Reuters Copper prices fell on Friday as the dollar firmed on the back of rising U.S. Treasury yields, making greenbackpriced metals more expensive for holders of other currencies.

Threemonth copper on the London Metal Exchange was down 0.9 to 8,973.50 a tonne by 0542 GMT, while the mosttraded May copper contract on the Shanghai Futures Exchange shed 0.8 to 66,600 yuan 10,225.86 a tonne.

LME nickel dropped 0.4 to 15,970 a tonne, aluminium was down 0.3 to 2,209 a tonne and ShFE aluminium fell 1.4 to 17,450 yuan a tonne. SHFE nickel declined 0.8 to 119,800 yuan a tonne.

U.S. 10year Treasury yields rose on Thursday above 1.75 for the first time in 14 months, pushing the dollar higher, as investors digested the U.S. Federal Reserves pushback against expectations of any early interest rate hikes.

The yields rising indeed brought more demand for the U.S. dollar…but the Fed meeting was actually very bullish for value or cyclical assets, said a Singaporebased metal trader.

It is bullish for industrial activity and commodities because money will flow out to emerging markets. Any dip in metals is a chance to buy now.

FUNDAMENTALS

Cancelled warrants for LME aluminium  metals earmarked for delivery rose to their highest since February 2020 at 382,325 tonnes.

Cancelled warrants for LME aluminium metals earmarked for delivery rose to their highest since February 2020 at 382,325 tonnes.

Chinas aluminium imports in the first two months of 2021 rose 150.7…

Wall St Ends Sharply Lower, Hit by Bond Yields

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