Sept 19 (Reuters) – Copper prices edged lower in Asian
trading on Tuesday, as the overall mood was subdued ahead of
interest rate decisions by central banks this week, with the
U.S. Federal Reserve set to begin its two-day policy meeting
later in the day.
Concerns that faltering post-pandemic economic rebound in
China, the world’s top metals consumer, could dampen demand and
rising inventories in exchange warehouses are also dragging
copper prices lower.
Three-month copper on the London Metal Exchange was
down 0.2% at $8,342 per metric ton, as of 0210 GMT, after a 0.6%
decline in the previous session.
The most-traded October copper contract on the Shanghai
Futures Exchange shed 0.6% to 68,930 yuan per ton,
extending losses following a 0.4% drop on Monday.
“Markets were quiet as investors wait for the FOMC meeting
later this week,” ANZ analysts said in a note.
“While the Fed is expected to keep rates on hold, strong
economic data is raising the prospect of rates remaining high
for the foreseeable future.”
Traders were also keeping an eye on the depreciation
pressure on China’s yuan against the U.S. dollar, which could
also affect Chinese demand for industrial metals.
The pressure is temporary, Chinese state media said on
Tuesday, as the yuan has fallen more than 5% on the greenback
year-to-date.
LME aluminium gained 0.1% to $2,217 per ton, zinc
shed 0.9% to $2,518, nickel slipped 0.1% to
$19,850, while lead edged down 0.2% to $2,243.50. Tin
slumped 1.7% to $25,750.
In Shanghai, aluminium gained 0.8% to 19,315 yuan a
ton, zinc was little changed at 21,785 yuan, lead
added 0.4% to 17,235 yuan, nickel dipped 0.3%
to 161,070 yuan, while tin fell 0.8% to 218,390 yuan.
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(Reporting by Enrico Dela Cruz; Editing by Rashmi Aich)
