(Adds comment, detail, updates prices)
London metals were steady on Tuesday as traders are awaiting the outcome of the U.S. Federal Reserve meeting this week for signs of the near-term direction for the dollar.
"It feels as if the market has gone into a stand aside mode.. with the three months prices doing relatively little and looking for direction," said Kingdom Futures in a report.
"Generally speaking this has been blamed on traders waiting to see the result of the FOMC (Federal Open Market Committee) meeting tomorrow... The reality is that prices need a catalyst to regain direction."
FUNDAMENTALS
- LME COPPER: London Metal Exchange copper CMCU3 climbed 0.2 percent to $6,536.50 a tonne by 0348 GMT. Prices have been consolidating around $6,450 to $6,550 a tonne since falling to a four-week trough of $6,453 a tonne last week.
- ShFE COPPER: Shanghai Futures Exchange copper SCFcv1 was up 0.9 percent at 50,790 yuan ($7,708) a tonne.
- FOMC: The focus for this week is the Fed's Sept. 19 to 20 policy meeting. The Fed may announce a plan to start shrinking its balance sheet at the meeting, but is widely expected to keep interest rates unchanged.
- CHINA PROPERTY: China's new home prices rose in August at the slowest pace in seven months and fell or levelled off in more cities as government cooling measures dampened speculation, though there were no signs of a sharper correction that could damage the economy.
- LME ZINC: London zinc CMZN3 steadied after rising 2.2 percent in the previous session. It earlier rose to its highest in more than a week at $3,123.50 a tonne.
- ShFE ZINC: Shanghai zinc SZNcv1 rose by 2.8 percent to 25,635 yuan, largely tracking gains in London while sister metal lead SPBcv1 jumped 3.4 percent.
- CHINA ZINC, NICKEL: Zinc prices have rallied on bets that steel makers may be able to pay more for their raw materials, given industry consolidation that has curbed overcapacity and pushed up profits.
- ZINC SUPPLY: Zinc prices have also heated up given expectations that tighter mine supply will impede production of refined metal. China's August zinc production fell 4.6 percent.
But several large mines have brought forward or raised production, including MMG Ltd's <1208.HK> Dugald River operations in Australia. Canada's Teck Resources Ltd
raised its production guidance for 2017 at its Red Dog zinc mine in Alaska to a range of 525,000 to 550,000 tonnes, up from 475,000 to 500,000 tonnes.
- PERU ZINC: Peru raised its zinc production by 7 percent in July. Peru is China's top zinc ore supplier with exports up by half on last year near 400,000 tonnes to July.
- COMING UP: U.S. Housing starts for Aug at 1230 GMT
PRICES Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1
ARBS LMESHFCUc3 LMESHFALc3 LMESHFZNc3 LMESHFPBc3 LMESHFNIc3
($1 = 6.5725 Chinese yuan renminbi)
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