April 4 (Reuters) – London base metal prices rose on Thursday, with copper hitting its highest level in more than 14 months, supported by a weaker dollar and global rate cuts hopes.
Three-month copper on the London Metal Exchange (LME) CMCU3 was up 0.9% at $9,344 per metric ton by 0752 GMT. The contract leapt to as much as $9,380 earlier in the session, a level last seen on Jan. 27, 2023.
The dollar fell as investors waited on U.S. labour data for clues on the Federal Reserve’s interest rate outlook. A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
Prices were also supported by Fed Chair Jerome Powell’s affirmation that his outlook on lowering the policy rate at some point this year remained the same and will continue to be guided by economic data.
Meanwhile, Euro zone inflation fell unexpectedly last month, solidifying the case for the European Central Bank to start lowering borrowing costs from record highs.
“A notable surge in speculative activity on the LME, paired with expectations of relaxed monetary policy outlook in Europe, has propelled metal prices to their highest levels in several months,” said Sucden Financial analysts in a note.
“The anticipation of monetary policy cutting cycle and ongoing geopolitical tensions are expected to further ease the pressure that has been felt by base metals in recent months,” they added.
China’s stronger-than-expected manufacturing data released earlier this week also boosted optimism around metals demand outlook in their biggest consuming market.
Prices of copper price have especially been aided by output cut plans by Chinese smelters amid a shortage of raw materials.
LME aluminium CMAL3 advanced 1% to $2,452, nickel CMNI3 increased 0.7% to $17,465, zinc CMZN3 rose 1.3% to $2,580.50, lead CMPB3 advanced 1.2% to $2,107.50 a ton and tin CMSN3 climbed 0.9% to $28,640.
The Chinese markets are closed for a public holiday on Thursday and Friday.
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(Reporting by Mai Nguyen in Hanoi; Editing by Sonia Cheema and Philippa Fletcher)
