BEIJING- Prices of base metals in London rose on Wednesday, supported by a weaker dollar ahead of US inflation data, although a gloomy demand outlook loomed over the market.
Three-month copper on the London Metal Exchange added 0.8 percent to $8,389 per metric ton.
The dollar sank to a two-month low against its major peers, making it more attractive to buy the greenback-priced commodity.
US inflation data is due later in the day, with traders expecting June core consumer prices to have climbed 5 percent on an annual basis. The figures will provide further clarity on the Federal Reserve’s progress in its fight against inflation.
Demand for copper, which is used widely in power, construction and transportation sectors, remained slow during the summer season and on subdued economic recovery.
While air conditioning was one bright spot, supporting demand, producers have cut their output due to slowing orders, leading to a bigger-than-expected slide in June copper tube operation rates to 80 percent, according to Shanghai Metals Market.
The most-traded August copper contract on the Shanghai Futures Exchange was down 0.3 percent at 67,840 yuan ($9,438.21) per metric ton.
