Most base metals prices fell on Monday, as traders and investors exercised caution ahead of the US Federal Reserve’s rate decision and amid a firmer dollar.
The dollar edged up but was still near multi-week lows against some of its major peers as traders were on guard ahead of crucial central bank meetings this week, including the Fed’s.
A firmer dollar makes greenback-priced metals more expensive to holders of other currencies.
Three-month copper on the London Metal Exchange fell 0.8 percent to $8,303 per metric ton, while the most-traded July copper contract on the Shanghai Futures Exchange eased 0.1 percent to 66,810 yuan ($9,350.33) per metric ton.
The drop, however, was cushioned by rate cuts and stimulus hopes in China, the world’s top metals consumer, as well as data showing strong growth in the Chinese renewable energy and the automobile sectors, both of which consume copper.
China’s non-fossil fuel energy sources, such as wind and solar power, now exceed 50 percent of its total installed electricity generation capacity, Chinese state media reported.
Chinese January-May vehicle sales were up 11.1 percent year-on-year, compared to a 12.2 percent drop in the same period last year, data from the China Association of Automobile Manufacturers showed. – Reuters
