BEIJING- London copper dipped on Wednesday from a seven-month high scaled in the previous session, as investors assessed near-term demand weakness in top consumer China, while supply jitters and dollar weakness put a floor under prices.
Three-month copper on the London Metal Exchange was down 0.2 percent to $9,272 a ton.
The contract had hit its highest since June in the previous session on bets Chinese demand would rise later in the year.
The market remains cautious over current headwinds and demand is likely to stay subdued around the Lunar New Year holidays, ANZ research said in a note, adding that premiums for copper cathode in China were low and stockpiles were rising.
Data on Tuesday showed China’s economy grew 3 percent last year, one of the weakest annual growth figures in nearly half a century.
Supply uncertainty and a subdued US dollar provided some support to the metal.
Glencore Plc’s huge Antapaccay copper mine in Peru is operating at “restricted” capacity due to anti-government protests that saw an attack on the facility last week, a company source told Reuters on Tuesday.
The dollar steadied, but remained at a low not seen since June, making it more attractive for non-dollar holders to buy the greenback-priced commodity. – Reuters
