NEW DELHI: Copper prices edged down on Monday after the US dollar steadied following last week’s inflation data, which cast doubts on when the Federal Reserve would begin easing interest rates, while trading resumed in China after the week-long Lunar New Year holiday. Three-month copper on the London Metal Exchange was down 0.7% at $8,430 per metric ton by 0711 GMT.
The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) rose 0.7% to 68,340 yuan ($9,495.36) a ton. Data last week showed both US producer prices and consumer prices increased more than expected in January, with the apparent stickiness in inflation raising the prospects of a delayed start to the Fed’s rate cuts.
A stronger US currency makes dollar-priced metals more expensive for holders of other currencies. However, there are expectations of demand revival in China.
“Any signs of stronger buying from China following its week-long Lunar New Year holiday should boost sentiment,” ANZ Research said in a note.
Among other metals, LME aluminium edged 0.2% lower to $2,213 a ton, nickel eased 0.6% to $16,260, zinc was up 0.04% at $2,386, lead fell 1.1% to $2,041.50 and tin fell 2.4% to $26,325. Tin prices had earlier touched their lowest since Feb. 9.
SHFE aluminium edged lower 0.6% to 18,775 yuan a ton, nickel was up 0.3% at 125,900 yuan, tin rose 1.5% to 217,490 yuan, while zinc fell 1% to 20,265 yuan, and lead was down 2.1% at 15,910 yuan.
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