Prices of most non-ferrous metals eased on Wednesday, weighed down by a stronger dollar after hotter-than-expected US inflation data dampened expectations for early interest rate cuts from the Federal Reserve.
Three-month copper on the London Metal Exchange was down 0.6 percent at $8,210 a metric ton.
The dollar traded near three-month highs against major peers as traders pushed back bets for a first Fed rate cut following surprisingly hot US inflation figures overnight.
A stronger US currency makes dollar-priced metals more expensive for holders of other currencies.
Federal funds futures currently price in no rate cut in March and a lower than 50 percent chance of easing in May, according to LSEG’s rate probability app.
Data on Tuesday showed US consumer prices increased more than expected in January amid rises in the costs of shelter and healthcare.
Copper, widely used in power and construction, is down more than 4 percent this month on concerns about demand from top consumer China and its property sector in particular, though activity is muted this week as China celebrates the Lunar New Year.
In other metals, LME aluminum eased 0.3 percent to $2,216.50 a ton, nickel was down 0.2 percent at $16,230, zinc slipped 0.3 percent to $2,308, while lead rose 0.4 percent to $2,005. Tin fell 1 percent to $27,300.
