Copper edges lower as dollar steadies; trading resumes in China – 2024-02-18

NEW DELHI, Feb 19 (Reuters) – Copper prices edged lower
on Monday as the U.S. dollar steadied after last week’s
inflation data cast doubts on when the Federal Reserve would
begin to ease interest rates, while trading resumed in China
after the week-long Lunar New Year holiday.

Three-month copper on the London Metal Exchange was
down 0.6% to $8,436 per metric ton by 0224 GMT.

The most-traded March copper contract on the Shanghai
Futures Exchange (SHFE) rose 0.8% to 68,430 yuan
($9,509.19) a ton.

Data last week showed both U.S. producer prices and consumer
prices increased more than expected in January, with the
apparent stickiness in inflation raising the prospects of a
delayed start to the Fed’s rate cuts.

A stronger U.S. currency makes dollar-priced metals more
expensive for holders of other currencies.

However, there were expectations of demand revival in China.

“Any signs of stronger buying from China following its
week-long Lunar New Year holiday should boost sentiment,” ANZ
Research said in a note.

Among other metals, LME aluminium was unchanged at
$2,218 a ton, nickel edged lower 0.3% to $16,310, zinc
was down 0.1% to $2,383, lead decreased 0.6% to
$2,052.50 and tin fell 2.3% to $26,360.

SHFE aluminium edged lower 0.4% to 18,820 yuan a
ton, nickel was up 0.6% at 126,350 yuan, tin
rose 1.6% to 217,650 yuan, while zinc fell 1% to 20,270
yuan, lead was down 1.3% to 16,030 yuan.

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DATA/EVENTS (GMT)

n/a UK House Price Rightmove MM, YY Feb

($1 = 7.1962 yuan)
(Reporting by Neha Arora; Editing by Subhranshu Sahu)