BEIJING: Copper prices extended their decline on Wednesday, as a steady US dollar dampened the greenback-priced commodity’s appeal, while a lack of policy support from top consumer China at its key parliament meeting left traders disappointed.
Three-month copper on the London Metal Exchange was down 0.1% at $8,486.50 per metric ton by 0130 GMT, while the most-traded April copper contract on the Shanghai Futures Exchange slipped 0.3% to 68,940 yuan ($9,579.66) per ton.
The dollar was largely steady on Wednesday, as traders avoided making large bets ahead of congressional testimony from Federal Reserve Chair Jerome Powell, as well as the European Central Bank rate decision and US jobs data later this week. China’s 5% growth target for 2024, as widely expected, failed to cheer up investors.
Copper under pressure as lack of Chinese stimulus disappoints
“The lack of details on any new policy measures left the market indifferent,” analysts at ANZ said in a note.
“This comes amid little signs of a ramp-up for China’s construction sector, despite the nation entering its usual seasonal building peak period during March and April,” they added.
LME aluminium eased 0.2% to $2,224.50 a ton, nickel dropped 0.9% to $17,595, zinc edged down 0.1% at $2,452, tin was down 0.2% at $26,770, while lead climbed 0.2% to $2,050.
SHFE nickel fell 2% to 134,640 yuan a ton, tin lost 0.4% at 218,470 yuan, aluminium slid 0.3% to 18,995 yuan and zinc declined 0.2% to 20,730 yuan, while lead gained 0.1% at 16,000 yuan.
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