Copper prices edged lower on Wednesday, pressured by a firmer dollar, although demand optimism due to the easing of COVID-19 restrictions in top consumer China and declining inventories offered support.
Three-month copper on the London Metal Exchange was down 0.2 percent at $9,684 a ton, while the most-traded July copper contract in Shanghai eased 0.1 percent to 72,650 yuan ($10,889.28) a ton.
“The stronger USD and central banks layering on the rate hikes in order to drive inflation lower at the expense of consumer and likely industrial consumption is weighing on the market sentiment,” said Stephen Innes, managing partner at SPI Asset Management.
“The central bank endgame to cool inflation by slowing economic growth isn’t great for commodities. The China reopening is already getting long in the tooth and the market isn’t reacting to the headlines like it did.” — Reuters
