BEIJING: London copper prices were stuck in a tight range on Monday, as investors weighed a firmer dollar and demand uncertainty in top consumer China against global supply concerns.
Three-month copper on the London Metal Exchange was up 0.2% at $8,730 a tonne, as of 0137 GMT, after hitting its lowest in nearly seven weeks on Friday.
Analysts at Guangda Futures said the lower copper prices would see some demand from the market ahead of April and May, a traditional solid demand season.
A slowdown in inventory buildup also signalled a pickup in demand as market participants look for signs of a solid post-pandemic recovery.
China’s economy is expected to generally rebound in 2023 and monetary policy will be precise and forceful, the central bank said in its quarterly policy implementation report released on Friday.
Copper supply from Indonesia, Peru and Chile has been facing disruptions.
First Quantum Minerals Ltd said last week it had suspended ore processing operations at a key Panamanian copper mine.
Copper heads for weekly losses as the dollar leaps
The dollar was on the front foot, hovering near a seven-week peak after a slew of strong US economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer.
The most-traded April copper contract on the Shanghai Futures Exchange lost 1.4% to 68,600 yuan ($9,841.33) a tonne.
LME lead added 0.4% at $2,080 a tonne and aluminium gained 0.4% to $2,344.50 a tonne, while zinc nudged down 0.2% to $2,959.50 a tonne and tin lost 0.9% to $25,415 a tonne.
Meanwhile, tight hydropower supply in the southwestern Yunnan province led to production cuts at aluminium and zinc smelters, according to local media reports.
SHFE aluminium fell 1.2% to 18,400 yuan a tonne, nickel dropped 1.5% to 194,990 yuan a tonne, zinc fell 2.1% to 23,000 yuan a tonne and tin shed 2.1% to 207,910 yuan a tonne, while lead was little changed at 15,335 yuan a tonne.
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