The most-traded April copper contract on the Shanghai Futures Exchange slipped 1.4 percent to close at 52,590 yuan ($8,311.34) a tonne on Wednesday, posting a 1 percent drop for the month. Shanghai zinc, nickel and lead ended down 1 percent, 0.4 percent and 1.5 percent, respectively. Only aluminium closed in positive territory, rising 0.6 percent, although it still registered a drop of 1.9 percent for the month.
Base metals mostly lost ground on Wednesday after US Federal Reserve Chairman Jerome Powell's pledge to stick with gradual increases in interest rates boosted the dollar and top metal consumer China's manufacturing growth slowed more than expected. "Fed Chair Powell's testimony to the House Financial Services Committee was supportive of the USD as he indicated that the recent market swings have not changed the Fed's policy going forward," brokerage Marex Spectron wrote in a note.
A stronger dollar makes metals more expensive for holders of other currencies, weighing on prices. The dollar stood near a three-week high against a basket of currencies on Wednesday after Fed Chairman Powell's upbeat views on the US economy bolstered bets on further interest rate hikes this year.
Growth in China's manufacturing sector in February slowed more than expected to the weakest in over 1-1/2 years as Lunar New Year holidays disrupted business activity and tougher pollution rules curtailed factory output. The US Commerce Department said on Tuesday it had made a final determination that imports of aluminium foil from China are being sold in the United States at less than fair value and producers are benefiting from subsidies from Beijing.
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