MELBOURNE: London copper was marking time on Wednesday, underpinned by a softer dollar and expectations that China's metal demand will slowly and steadily improve into the fourth quarter.
Volumes were low with the top copper consumer China midway through a week of holidays.
"We do not expect to see much change in the metal markets given that China is out this week, but have to suspect that ... the recent collapse in gold and a reviving dollar could start impacting prices at some point," Ed Meir of INTL FC Stone said in a report.
"An inflection point could come on Friday when the U.S. nonfarm payroll comes out. A stronger-than-expected number should boost the dollar further and increase the pressure on commodities."
Three-month copper on the London Metal Exchange had edged down 0.3 percent to $4,792.50 a tonne by 0132 GMT, following small losses in the previous session. Prices have some solid support around the $4,730-$4,745 a tonne range, which includes the 100- and 200-day moving averages.
The Shanghai Futures Exchange was closed for a third day. Markets will reopen on Monday.
A flurry of data from China in coming weeks is expected to point to modest improvement in the economy in the third quarter as a government infrastructure spree and a housing boom boosts demand from steel and glass to furniture and appliances.
In wider markets, the International Monetary Fund maintained its forecast for weak global growth on Tuesday and warned that further stagnation will fuel more populist sentiment against trade and immigration that would stifle activity, productivity and innovation.
Meanwhile, Chilean copper miner Antofagasta Minerals said on Tuesday it had reached a 36-month wage deal with unionized supervisors at its flagship Los Pelambres mine.
LME lead was the standout performer in last week's session, rising 10 percent to an 18-month high, said Standard Chartered, adding that there was "little in the way of fundamental justification for this sudden surge in price".
"We believe the rally in lead prices has been driven by commodity trading advisors (CTA) buying momentum, combined with discretionary covering ...(and) represents an overextension in net investor longs and ... an opportunity to short."
LME lead had slipped 0.8 percent on Wednesday.
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