MARKET OVERVIEW - Base Metals Rise, but Dollar Strength Limits Prices

Most base metal prices rose due to positive economic indicators from the U.S., but a stronger dollar and hawkish Fed interest rate outlook limited further gains, keeping prices in a narrow range.

According to data released yesterday, fewer Americans than expected applied for unemployment benefits last week. Meanwhile, the U.S. economy grew at an annual rate of 3.1% in the third quarter ending September 30, surpassing the estimated 2.8%, driven by strong consumer spending. However, the strong dollar constrained the increase in metal prices.

Three-month copper on the London Metal Exchange (LME) rose by 0.2% to $8,900.5 per ton at 04:20 GMT. The January copper contract on the Shanghai Futures Exchange fell by 0.4% to 73,660 yuan per ton. On the LME, aluminum gained 0.4% to trade at $2,516.5 per ton, zinc increased by 0.4% to $2,980 per ton, tin rose by 0.7% to $28,585 per ton, nickel climbed by 0.2% to $15,145 per ton, while lead decreased by 0.2% to $1,967 per ton.