NEW DELHI: Copper prices edged higher on Wednesday, although further gains were likely to be capped on concerns around weak demand in top consumer China and a steady US dollar.
Markets are also expected to tread cautiously ahead of the US Federal Reserve’s policy meeting next week.
Three-month copper on the London Metal Exchange (LME) was up 0.96% at $8,610 a tonne by 0350 GMT.
Copper prices had fallen to their lowest in six weeks on Tuesday due to weakening Chinese demand, strong dollar, and a sharp rise in inventories in the LME warehouse system.
“Copper will be under pressure until demand from China revives,” a research note from National Australia Bank Ltd noted.
The most-traded June copper contract on the Shanghai Futures Exchange slid 1.17% to 67,370 yuan ($9,732.60) a tonne.
LME aluminium edged up 0.24% to $2,341 a tonne, nickel moved 0.55% higher to $23,470 a tonne, lead gained 0.40% to $2,115 a tonne, tin climbed 0.45% to $25,700 a tonne, while zinc rose 0.92% to $2,624 a tonne.
Weak Chinese demand drags down copper prices
On the Shanghai exchange, aluminium declined 0.45% to 18,715 yuan a tonne, zinc dropped 1.54% to 21,125 yuan a tonne, lead advanced 0.03% to 15,285 yuan a tonne and tin shed 2.50% to 207,310 yuan a tonne, while nickel fell 1.94% to 179,550 yuan a tonne.
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