HANOI- Prices of base metals rose on Thursday, buoyed by hopes of an interest rate reduction in the US next week, with nickel getting an extra boost from a supply disruption threat from major producer Russia.
Three-month copper on the London Metal Exchange rose 0.9 percent to $9,170 per metric ton, while the most-traded October copper contract on the Shanghai Futures Exchange advanced 1.2 percent to 73,630 yuan ($10,341.73) a ton.
The Federal Reserve will likely start the rate cuts next week with a quarter-of-a-percentage-point reduction.
The trim could boost economic growth and metals demand and put pressure on the dollar, which will make greenback-priced metals cheaper to holders of other currencies.
LME nickel rose as much as 0.6 percent to $16,200 a ton, the highest since Sept. 4. SHFE nickel climbed as much as 3 percent to 124,600 yuan. However, both contracts are still down on a monthly basis on oversupply pressure.
Russian President Vladimir Putin said on Wednesday that Moscow should consider limiting exports of several commodities, including nickel, in retaliation for Western sanctions.
More than a fifth of the nickel in LME-registered warehouses is of Russian origin, data showed on Tuesday. Russia is home to Nornickel one of the world’s biggest nickel producers and a major supplier to China and Europe.
