Copper inches lower after dollar firms; China resumes trade

Copper prices edged down onMonday afterthe U.S. dollarsteadied followinglast week’s inflationdata, which cast doubts on when the Federal Reserve would begin easing interest rates, while trading resumed in China after the week-long Lunar New Year holiday.

Three-month copper on the London Metal Exchange CMCU3 was down 0.7% at $8,430 per metric ton by 0711 GMT.

The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 rose 0.7% to 68,340 yuan ($9,495.36) 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. FRX/

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

However, there are expectationsof 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 CMAL3 edged 0.2%lower to $2,213 a ton, nickel CMNI3 eased 0.6%to $16,260, zinc CMZN3 was up 0.04% at $2,386, lead CMPB3 fell 1.1%to $2,041.50 and tin CMSN3 fell 2.4%to $26,325. Tin prices had earlier touched their lowest since Feb. 9.

SHFE aluminium SAFcv1 edged lower 0.6% to 18,775 yuan a ton, nickel SNIcv1 was up 0.3% at 125,900yuan, tin SSNcv1 rose 1.5%to 217,490yuan, while zinc SZNcv1 fell 1% to 20,265 yuan, and leadSPBcv1 was down 2.1% at15,910 yuan.
Source: Reuters (Reporting by Neha Arora; Editing by Subhranshu Sahu, Sherry Jacob-Phillips and Sonia Cheema)