NEW DELHI: Copper prices edged lower on Monday as the US dollar steadied after last week’s inflation data cast doubts on when the Federal Reserve would begin to ease interest rates, while trading resumed in China after the week-long Lunar New Year holiday.
Three-month copper on the London Metal Exchange was down 0.7% at $8,426 per metric ton by 0400 GMT. The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) rose 0.7% to 68,330 yuan ($9,495.69) a ton.
Data last week showed both US producer prices and consumer prices increased more than expected in January, with the apparent stickiness in inflation raising the prospects of a delayed start to the Fed’s rate cuts.
A stronger US currency makes dollar-priced metals more expensive for holders of other currencies. However, there were expectations of demand revival in China.
“Any signs of stronger buying from China following its week-long Lunar New Year holiday should boost sentiment,” ANZ Research said in a note.
Copper on track for biggest weekly gain
Among other metals, LME aluminium edged 0.2% lower to $2,213 a ton, nickel eased 0.4% to $16,290, zinc was down 0.2% at $2,381, lead decreased 0.9% to $2,046 and tin fell 2.1% to $26,395.
SHFE aluminium edged lower 0.6% to 18,775 yuan a ton, nickel was up 0.3% at 125,970 yuan, tin rose 1.6% to 217,640 yuan, while zinc fell 0.7% to 20,330 yuan, lead was down 1.8% to 15,955 yuan.
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