NEW DELHI – Copper prices edged higher on Wednesday, although further gains were likely to be capped on concerns around weak demand in top consumer China and a steady US dollar.
Markets are also expected to tread cautiously ahead of the US Federal Reserve’s policy meeting next week.
Three-month copper on the London Metal Exchange (LME) was up 0.96 percent at $8,610 a ton.
Copper prices had fallen to their lowest in six weeks on Tuesday due to weakening Chinese demand, strong dollar, and a sharp rise in inventories in the LME warehouse system.
“Copper will be under pressure until demand from China revives,” a research note from National Australia Bank Ltd noted.
The most-traded June copper contract on the Shanghai Futures Exchange slid 1.17 percent to 67,370 yuan ($9,732.60) a ton.
LME aluminum edged up 0.24 percent to $2,341 a ton, nickel moved 0.55 percent higher to $23,470 a ton, lead gained 0.40 percent to $2,115 a ton, tin climbed 0.45 percent to $25,700 a ton, while zinc rose 0.92 percent to $2,624 a ton.
On the Shanghai exchange, aluminum declined 0.45 percent to 18,715 yuan a ton, zinc dropped 1.54 percent to 21,125 yuan a ton, lead advanced 0.03 percent to 15,285 yuan a ton and tin shed 2.50 percent to 207,310 yuan a ton, while nickel fell 1.94 percent to 179,550 yuan a ton. — Reuters
