BEIJING- Prices of copper were under pressure on Wednesday because the US dollar firmed as optimism about early and aggressive US interest rate cuts waned.
Three-month copper on the London Metal Exchange (LME) slid 0.2 percent to $8,528.50 per metric ton, while the most-traded February copper contract on the Shanghai Futures Exchange (SHFE) was down 0.2 percent to 68,660 yuan ($9,600.11) per ton.
The dollar index on Tuesday recorded its biggest daily increase since October, supported by higher US bond yields, while investors waited for US jobs data and European inflation numbers for clues on central banks’ policies.
Investors bet the US report will show a robust job market in the world’s top economy, adding to the argument against the need for rate cuts as early as March.
Recent buying slowed down in China, the world’s top metal consumer, due to seasonal weak demand and strong domestic production in December.
Yangshan copper premium, an indicator of import demand, fell to $67.50 per ton, down by 67 percent from about one month earlier.
LME aluminum slipped 0.2 percent at $2,331.50 a ton, zinc shed 0.5 percent to $2,607, lead nudged down 0.1 percent to $2,063, while nickel gained 0.6 percent to $16,675, and tin added 0.2 percent to $25,235.
