London copper edges down as investors eye Fed meeting
- Three-month copper on the London Metal Exchange fell 0.3% to $9,350 a tonne
Copper prices in London fell on Wednesday as investors remained cautious ahead of a key US Federal Reserve gathering which could shed light on any plans for policy tapering in the world's biggest economy.
Three-month copper on the London Metal Exchange fell 0.3% to $9,350 a tonne by 0508 GMT. The most-traded October copper contract on the Shanghai Futures Exchange rose 1% to 69,180 yuan ($10,680.54) a tonne, tracking overnight gains in London.
Copper is often used as a gauge for global economic health. A policy tightening in the United States could slow its economic recovery and boost the dollar, making greenback-priced metals more expensive to holders of other currencies.
Fed Chair Jerome Powell is due to speak at the bank's Jackson Hole symposium on Friday.
"The market sentiment is still in a state of vigilance, waiting for the Fed," said Huatai Futures in a report, adding prices will fluctuate widely with downside risk pressuring.
"Whether the pandemic situation can be reversed in the medium to long term remains to be tested," it said.
FUNDAMENTALS
- LME aluminium rose 0.2% to $2,619.50 a tonne, zinc fell 0.7% to $2,998 a tonne and tin was up 0.5% to $33,000 a tonne.
ShFE aluminium advanced 0.7% to 20,555 yuan a tonne, zinc climbed 1.2% to 22,535 yuan a tonne and tin increased 1.8% to 239,860 yuan a tonne.
LME cash aluminium has been trading at premium over the three-month contract for eight straight sessions by Tuesday, as inventories in both LME and ShFE warehouses fell.
Prices of aluminium raw material alumina have hit their highest in almost six months after a blaze at the Jamalco refinery in Jamaica led to fears of tighter supply.
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