BEIJING: London copper prices slipped on Wednesday with China’s soft industrial data weighing on sentiment, while traders stayed on the sidelines ahead of a rate decision from the Federal Reserve.
Three-month copper on the London Metal Exchange was down 0.2% at $8,594.50 per metric ton by 0423 GMT.
The contract has gained 0.5% so far this month.
China’s manufacturing activity contracted for the fourth straight month in January, an official factory survey showed on Wednesday, suggesting the sprawling sector and the broader economy were struggling to regain momentum at the start of 2024.
China’s copper consumption at home grew about 4.5% in 2023, as rising demand from renewable sector offset a contraction in the housing sector, according to China Nonferrous Metals Industry Association (CNIA).
Analysts expect the growth rate to slow down to 3% or lower this year.
Prices, however, could find support on the prospect of further stimulus from Beijing, traders said.
Copper claws higher on hopes for more Chinese support measures
The most-traded March copper contract on the Shanghai Futures Exchange added 0.5% to 69,360 yuan ($9,658.28)per ton.
The US Fed is expected to leave interest rates unchanged later in the day, and investors will shift focus on any clues from Fed Chair Jerome Powell on the likelihood of a rate cut in March.
Also weighing on the metal was mine-side supply tension. Chinese copper smelters were advised by the government-backed CNIA to cut production and postpone new projects amid tightening raw material supplies.
LME zinc edged 0.1% lower to $2,563 a ton, aluminium declined 0.6% to $2,262, nickel shed 0.6% to $16,405, lead eased 0.4% to $2,167.50, while tin gained 0.3% to $26,085.
SHFE zinc slid 0.1% to 21,305 yuan a ton, nickel lost 0.8% to 127,330 yuan, tin moved 0.6% lower to 218,570 yuan, while aluminium held steady at 19,005 yuan and lead was flat at 16,250 yuan.
Comments