NEW DELHI: Copper prices edged lower on Tuesday, pressured by a stronger US dollar, while traders weighed demand prospects in top consumer China after the Lunar New Year break.
Prices were briefly up after China cut the benchmark reference rate for mortgages at a monthly fixing as authorities ramped up efforts to stimulate credit demand and revive the property market.
The five-year loan prime rate (LPR) was lowered by 25 basis points to 3.95% from 4.20% previously, while the one-year LPR was left unchanged at 3.45%.
Three-month copper on the London Metal Exchange was down 0.2% at $8,415 per metric ton by 0357 GMT.
The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) fell 0.2% to 68,270 yuan ($9,484.45) a ton.
In the broader currency market, the dollar edged higher, though moves were largely subdued due to a US holiday on Monday.
A stronger US currency makes dollar-priced metals more expensive for holders of other currencies. With China’s return from the Lunar New Year holiday break, traders and analysts will be looking for clues to demand over the coming weeks amid prospects of a pick-up in construction activity as winter draws to an end.
“The metal (copper) is also expected to benefit from energy transition, with investment in renewable energy infrastructure in particular boosting demand enough to offset weakness in traditional manufacturing/industrial sectors,” ANZ Research said in a note.
Among other metals, LME aluminium fell 0.2% to $2,192 a ton, nickel edged lower 0.2% to $16,310, zinc was down 0.7% at $2,385, lead decreased 0.4% to $2,035.50 and tin fell 0.3% to $26,355.
SHFE aluminium edged lower 0.9% to 18,680 yuan a ton, nickel was up 0.3% at 126,700 yuan, tin fell 0.3% to 217,360 yuan, zinc rose 0.2% to 20,275 yuan, and lead was down 1% to 15,840 yuan.
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