Copper and zinc advanced for the first time in four days as concern over the artillery-fire exchange between North and South Korea eased, pushing down the dollar. Aluminum, lead, nickel and tin gained.
Three-month delivery copper increased as much as 1.8 percent to $8,289.75 a metric ton on the London Metal Exchange before trading at $8,250 a ton at 1:05 p.m. in Shanghai. The metal dropped 3.4 percent in the past three days. Zinc gained 1.8 percent to $2,122.50 a ton after a decline of 4.6 percent.
The United Nations said in an e-mailed statement that UN Commander Walter Sharp proposed to North Korea’s military to hold talks between officers at the rank of general over the country’s shelling of a South Korean island. The dollar fell for the first time in three days against the euro.
“The U.S. dollar is an important factor that moves copper prices these days,” Xu Maili, an analyst at Donghai Futures Co., said in Shanghai.
Investors bought traditionally safer assets, like the dollar, after the exchange of artillery fire yesterday, and as the situation isn’t worsening today, the weakening dollar supported buying of metals, Xu said.
The U.S. Dollar Index, which tracks the greenback against six major trading partners, reached an eight-week high at 79.743 yesterday, and declined as much as 0.3 percent to 79.435 today.
South Korea has raised its military surveillance alert to the second-highest level after North Korea fired shells into its military base on Yeonpyeong Island, Defense Minister Kim Tae Young told lawmakers in Seoul.
U.S. Economy
Copper for March delivery in Shanghai added 1.1 percent to 62,170 yuan ($9,346) a ton. The most active contract tumbled to 60,920 yuan a ton yesterday, the lowest level since Oct. 8. Zinc gained 1.2 percent to 17,410 yuan per ton, rallying from 17,125 yuan, the lowest price since Sept. 30.
The LME index of six industrial metals declined to 3,640.1 yesterday, the lowest level since Sept. 27.
Most officials at the Nov. 2-3 Fed meeting expected the purchase of $600 billion of Treasuries “to help promote a somewhat stronger recovery in output and employment while also helping return inflation, over time, to levels consistent with” the Fed’s legislative mandate, the Open Market Committee said.
“The U.S. economic condition maybe better than we expected,” Zeng Chao, an analyst at Everbright Futures Co., said from Shanghai.
Chile Strike
The U.S. economy grew at a 2.5 percent annual rate in the third quarter, more than the 2 percent previously calculated, as companies increased shipments abroad and Americans boosted spending. A separate report showed purchases of existing homes decreased 2.2 percent to a 4.43 million annual rate, the National Association of Realtors said.
Anglo American Plc and Xstrata Plc’s Collahuasi venture said it will ignore union calls to resume wage talks and continue negotiating directly with workers in a bid to end a strike at the world’s fourth-biggest copper mine.
Collahuasi in northern Chile extended an offer of 14 million pesos ($29,313) in bonuses and low-interest loans until Nov. 26 from yesterday’s deadline because it is yet to contact all workers, said Bernardita Fernandez, a company spokeswoman. The deal will be cut to 12 million pesos on Nov. 27, she said.
Aluminum in London gained 1 percent to $2,277 a ton, lead added 0.9 percent to $2,206 a ton, nickel climbed 1.4 percent to $21,900 a ton. Tin advanced 0.4 percent to $24,005 a ton.
--Helen Sun. Editor: James Poole