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 US 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 percent at $8,342 per metric ton, after a 0.6 percent decline in the previous session.
The most-traded October copper contract on the Shanghai Futures Exchange shed 0.6 percent to 68,930 yuan per ton, extending losses following a 0.4 percent 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 US dollar, which could also affect Chinese demand for industrial metals. – Reuters
