MELBOURNE: London copper edged up on Wednesday but was set for a monthly drop in August, pushing it into negative territory for the year, while zinc, tin and lead eyed monthly advances.
Metals prices rose on limited bargain-hunting but were still under pressure, traders said, with the dollar hovering near a three-week high against a basket of currencies on Wednesday.
Upbeat U.S. data enhanced expectations of a near-term rate hike by the Federal Reserve, with a U.S. payrolls report on Friday also in focus. A stronger dollar dents commodity demand by making the asset class less affordable for those paying with other currencies.
"The pullback in commodities is likely to continue in the short term with a stronger U.S. dollar and weaker fundamentals reducing investor appetite," ANZ said in a report.
London Metal Exchange copper had climbed 0.1 percent to $4,612 a tonne by 0720 GMT, after plumbing its weakest since June 24 at $4,600 a tonne on Tuesday due to mounting supply.
Prices slid 6.3 percent in August and now face a 2-percent loss for the year, the only LME contract in negative territory.
Shanghai Futures Exchange copper slipped 0.3 percent to 36,270 yuan ($5,431) a tonne.
LME tin was the biggest monthly gainer, up by 5 percent and 29 percent this year as top exporter Indonesia shipped less and after pollution-related shutdowns in China.
LME zinc and lead were both set to climb around 3 percent in August, taking year-to-date gains to nearly 43 percent and nearly 5 percent respectively after the closure of several giant mines, and also aided by China's crackdown on polluting plants.
China's zinc mine output climbed to 515,000 tonnes in June, up 11 percent year-on-year and a new record monthly volume, Standard Chartered said in a report.
"Given how stretched investor positioning is to the long side in zinc, the increase in China's mine supply may catalyse some profit-taking. However, the broader fundamental trends suggest any such correction in price should be relatively shallow and short lived."
LME nickel was eyeing a 8-percent monthly drop, trimming the year's advance to 11 percent after a wider crackdown on Philippine mine supply failed to materialise. LME aluminium was barely changed facing a half a percent loss on the month.
Elsewhere, Chile's mining regulator on Tuesday ordered a halt to all operations at two major copper mines, state-owned Codelco's Chuquicamata and Freeport-McMoran Inc's El Abra, to investigate separate fatal accidents. The closures are unlikely to make a dent in a surplus expected this year.
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