BEIJING- Prices of London base metals rose on Wednesday after soft US producer prices data overnight bolstered rate-cut expectations and risk appetite.
Three-month copper on the London Metal Exchange gained 0.6 percent to $9,014 per metric ton, while the most-traded September copper contract on the Shanghai Futures Exchange was nearly flat at 72,510 yuan ($10,139.56) a ton.
US producer prices increased less than expected in July as a rise in the cost of goods was tempered by cheaper services, indicating that inflation continued to moderate.
The dollar remained on the back foot after tumbling versus major peers in previous session, making it cheaper to buy the greenback-priced commodity.
Gains in the metals market were however limited by concerns about demand in top consumer China.
China’s bank lending tumbled more than expected in July, hitting the lowest in nearly 15 years, dragged down by tepid credit demand and seasonal factors and raising expectations that the central bank may dole out more easing steps.
Workers declared a strike at the world’s largest copper mine after negotiations collapsed and could lead to a major hit to production.
Analysts said the market was so far calm amid hopes for a quick resolution and weaker demand from top copper consumer China.
