BEIJING: London copper prices were back on an uptrend on Thursday, supported by firm market fundamentals and a retreat in the U.S. dollar.
Three-month copper on the London Metal Exchange moved 0.5% higher to $9,422.50 per metric ton by 0349 GMT, reversing losses in the previous session.
The contract declined on Wednesday after U.S. inflation data rose more than expected in March, pushing out the expected timing of a first rate cut to September from June.
That dented investors’ sentiment and sent the dollar surging, making it more expensive to buy the greenback-priced commodity.
Copper retreats from highs after strong US inflation data
But the broader backdrop remains positive for copper, said ANZ analysts. Supply-side disruptions and a pick-up in China’s manufacturing activity should see the market remain tight, they added.
The dollar index was slightly lower on Thursday from a near five-month high.
Data on Thursday showed China’s consumer prices in March rose for a second straight month, suggesting worrying deflationary pressures appear to be slowly easing.
However, producer price deflation persisted, maintaining pressure on policymakers to launch more stimulus as demand remained weak.
The most-traded June copper contract on the Shanghai Futures Exchange little moved at 76,500 yuan ($10,572.29) per ton.
SHFE will begin restrictions on the maximum intraday position opening volumes for the copper contract from April 12.
LME tin was stable at $32,000 a ton, aluminium increased 0.6% to $2,470, nickel was up 0.2% at $18,395, zinc climbed 1.5% to $2,776.50, while lead lost 0.7% at $2,160.
SHFE tin rose 0.6% to 248,900 yuan a ton, aluminium increased 0.7% to 20,515 yuan, nickel gained 0.5% to 139,900 yuan, zinc jumped 2.6% to 22,855 yuan and lead nudged up 0.2% at 16,725 yuan.
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