Copper slides to one-month low, Chinese imports drop

Copper prices slipped on Wednesday to a one-month low on selling triggered by a higher dollar, lower imports of the metal by top consumer China and rising inventories. Benchmark copper on the London Metal Exchange was untraded at the close, but bid down 0.1 percent at $5,765 a tonne from an earlier session low at $5,755.50.
Growing expectations the US Federal Reserve will hike rates next week have boosted the US currency, which when it rises makes dollar-denominated metals more expensive for holders of other currencies, which could mean weaker demand. "The Fed appears determined to raise rates next week," said Quantitative Commodity Research analyst Peter Fertig. "But it may still depend on data, particularly the non-farm payrolls." The US monthly jobs report due on Friday includes non-farm payrolls, which are expected to rise by 190,000 in February. They come before the Fed meets on March 14-15.
Copper imports to China - accounting for nearly half of global consumption estimated at around 23 million tonnes this year - totalled 340,000 tonnes in February, down 10.5 percent from January and down 19 percent from a year ago. "China remains key and we project moderate demand growth this year, mainly from the power sector," Julius Baer analyst Carsten Menke said in a note. "
Stocks of copper in LME approved warehouses at 288,525 tonnes have nearly doubled since last Thursday. Most of the deliveries were to warehouses in Asia, which traders say suggest the metal came from China. However, mine disruptions in Chile, Peru and Indonesia are supporting prices. One disruption is a strike at the Escondida copper mine, the world's largest, in Chile. "After 25 days (of strikes) we can expect lower production already by some 95,000 to 100,000 tonnes, which naturally will go on rising while the strike is prolonged," Chile's Mining Minister Aurora Williams said.
Aluminium ended up 0.1 percent at $1,877, zinc gained 0.6 percent to $2,710, lead added 0.8 percent to $2,251, tin was flat at $19,375 and nickel slid 4.2 percent to $10,200. Traders said nickel's losses towards the end of the session were due to funds cutting bets on higher prices.