BEIJING- Copper prices were under pressure on Wednesday as expectations of prolonged tepid demand offset support from a weaker dollar, while trading remained cautious ahead of key US inflation data.
Three-month copper on the London Metal Exchange was little moved at $8,595 a tons.
Investors are awaiting key US consumer prices data to be released later in the day, which will provide more clues on the Federal Reserve’s monetary policy path.
Amid caution, the dollar weakened broadly on Wednesday after US President Joe Biden and top lawmakers failed to break a deadlock on the debt ceiling crisis.
The contract has made little movement so far this month, after recording its biggest monthly drop since June 2022 in April.
Any rebound might be capped as tepid demand is expected to stay for at least the second quarter, analysts at Meierya Futures said, adding the increases in inventories outside of China added further pressure to global prices.
Copper inventories in LME-approved warehouses have climbed 40 percent to 71,675 tons since April 18.
Meanwhile, Peru’s March copper production leapt 20.4 percent from a year earlier to reach 219,275 tons, the country’s energy and mining ministry said on Tuesday, as large mines resume their operations following stoppages due to social protests. -Reuters
