Copper futures in Shanghai edged lower on Thursday, nearing recent 4-1/2 year lows, while London metal held steady following its overnight plunge to a four-year low on concerns about slowing demand and rising stocks. Sentiment was dominated by, weak data and soaring inventories.
London Metal Exchange aluminium stocks leapt by almost 100,000 tonnes to above 2 million overnight and copper stocks rose 3,275 tonnes to 321,900. "The blizzard of cutbacks by miners and smelters across metals and geographies has been neutralised by the dismal data and stock rises we have seen. For the moment metals are not enjoying the dollar stimulus, with the exception of gold," said Nick Moore, chief commodities strategist at RBS.
The dollar hit a 2-1-2-month low against the euro and headed towards a 13-year low versus the yen after the US Federal Reserve slashed interest rates on Tuesday to between zero and 0.25 percent from 1 percent.