Shanghai copper little changed amid US rate cut uncertainties

SHANGHAI: Copper prices were little changed on Wednesday as traders remained cautious about the timing of further US rate cuts, while doubts lingered about whether China would roll out more stimulus to revive cooling economic growth.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trade 0.04% higher at 79,970 yuan ($11,233.32) per metric ton as of 0800 GMT.

The benchmark three-month copper on the London Metal Exchange fell 0.1% to $9,965 a ton by 0804 GMT.

US Federal Reserve Chair Jerome Powell said on Tuesday the central bank needed to continue balancing competing risks of high inflation and a weakening job market.

However, arguments from other Fed officials showed policy divides inside the central bank, leading to uncertainties about further rate cuts this year.

The US dollar strengthened, weighing on the market.

A stronger dollar makes commodities traded with the greenback more expensive for investors using other currencies.

Meanwhile, China kept its key lending rate unchanged for a fourth month on Monday, following a US rate cut, keeping investors wondering about the possibility of more stimulus policies from Beijing and sentiments cautious.

The wet material leak incident at Freeport’s Grasberg mining operations remained unresolved, keeping supply of raw material copper concentrate tight, analysts at Chinese broker Galaxy Futures said.

Among other SHFE base metals, aluminium rose 0.1%, zinc lost 0.46%, nickel added 0.2%, lead declined 0.32% and tin climbed 0.52%.

Among other LME metals, zinc lost 0.28%, nickel shed 0.35%, tin dipped 0.18%, aluminium and lead held stable.