BEIJING: Prices of copper slipped on Wednesday on a steady US dollar as investors awaited key economic data, while demand concerns due to a gloomy economic outlook further hit sentiment.
Three-month copper on the London Metal Exchange was down 0.1% to $8,364 per metric ton by 0432 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange lost 0.4% to 67,880 yuan ($9,461.68) per ton.
US inflation data due on Thursday will provide clues on when the Federal Reserve is likely to cut rates.
The dollar index crept higher on Wednesday , making it more expensive for non-dollar buyers to purchase the greenback-priced commodity.
Global economic headwinds also weighed on copper prices, often seen as an economic bellwether.
The World Bank warned on Tuesday that global growth in 2024 is set to slow for a third year in a row, prolonging poverty and debilitating debt levels in many developing countries.
Copper rises as softer dollar lifts appeal
The World Bank also forecast China’s economic growth to slow to 4.5% in 2024.
China will release its trade data on Friday for investors to gauge prospects for demand in the world’s biggest metals consumer.
Although end-users slowed down copper consumption in January, a traditional weak demand season, premium to buy copper in the spot market remained high amid thin stocks, which could lend some support to futures prices, said analysts at Guotai Jun’an Futures.
LME aluminium dipped 0.1% to $2,247.50 a ton, nickel slipped 0.5% to $16,200, while zinc climbed 0.2% to $2,508.50, tin increased 0.6% to $24,395, lead was up 0.8% at $2,067.
SHFE aluminium ticked 0.4% higher to 19,065 yuan a ton, lead rose 1.3% to 16,345 yuan, while zinc slid 0.4% to 21,080 yuan, tin dipped 0.2% to 204,060 yuan and nickel shed 0.2% to 124,880 yuan.
Source: Brecorder
