Mumbai, 11 Sep (Commoditiescontrol): London copper prices edged higher on Wednesday, buoyed by a weaker dollar ahead of key U.S. inflation data. However, concerns over a sluggish demand outlook in China, the world's top metals consumer, limited the upward movement.
Three-month copper on the London Metal Exchange (LME) rose 0.4% to $9,059 per metric ton, recovering losses from the previous session. Meanwhile, the most-traded October copper contract on the Shanghai Futures Exchange dipped 0.2% to 72,700 yuan ($10,218.14) per ton.
Traders are focusing on the economic health of the U.S. and a potential interest rate cut by the Federal Reserve. The U.S. central bank is expected to lower rates this month for the first time in more than four years. Investors are keenly awaiting the U.S. inflation report due later today, which could provide further insights into the extent of the rate reduction.
The easing dollar, which slipped from a one-week high, made copper more affordable for holders of other currencies, supporting prices. However, a slowdown in China’s economy and manufacturing sector has dampened demand, reflected in a decline in copper imports last month.
Analysts at ANZ noted that sentiment has been hit hard by a continued selloff in China's stock markets. With Beijing yet to implement major fiscal stimulus measures to counteract the economic slowdown, the outlook for demand remains subdued.
In other base metals, LME nickel rose 0.2% to $15,775 a ton, lead gained 0.5% to $1,965, and aluminium increased 0.5% to $2,348.50. Zinc remained flat at $2,713, while tin fell 0.2% to $30,480.
On the Shanghai Futures Exchange, aluminium was up 0.1% at 19,345 yuan a ton, but nickel fell 0.4% to 121,240 yuan. Zinc lost 0.3% to 22,765 yuan, lead declined 0.6% to 16,475 yuan, and tin dropped 0.4% to 251,250 yuan.
(By Commoditiescontrol Bureau: 09820130172)
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