(Updates prices)
Feb 13 (Reuters) - Copper prices in London rose on
Monday, but hovered near a one-week low as market participants
were cautious ahead of key U.S. inflation data release this
week.
Three-month copper on the London Metal Exchange edged up 0.3% to $8,887.50 a tonne by 0825 GMT, rebounding from
a one-week low of $8,817 hit earlier in the session and
following three consecutive weekly losses.
Copper prices have been tip-toeing around $8,800-$9,000 for
a week, as markets weighed between a potential demand recovery
from top consumer China and a stronger dollar caused by higher
U.S. interest rates.
The dollar climbed towards a five-week high against major
peers on rising bets for prolonged U.S. Federal Reserve policy
tightening ahead of a crucial consumer price report on Tuesday.
A firmer dollar makes greenback-priced metals more expensive
to holders of other currencies.
The most-traded March copper contract on the Shanghai
Futures Exchange fell 0.5% to 68,150 yuan ($9,986.81) a
tonne.
"Not much is moving metals today. The (U.S.) CPI data will
move markets," said a metals trader.
Helping prices was new bank loans in China jumping more than
expected to a record 4.9 trillion yuan in January as the central
bank looks to kickstart a recovery in the world's second-biggest
economy after the lifting of harsh pandemic controls.
China is the biggest metals consumer globally.
LME aluminium rose 0.2% to $2,445 a tonne,
rebounding from its one-month low hit in the previous session.
SHFE aluminium fell as much as 1.6% to 18,435 yuan a
tonne, its weakest in a month, before closing at 18,550 yuan a
tonne, still down 1%.
SHFE zinc fell to 22,920 yuan a tonne, its lowest
since Nov. 4, as inventories rose in SHFE warehouses, which were
at 105,669 tonnes on Friday, the highest since July last year. LME zinc declined 0.5% to $3,026 a tonne. Stockpiles
of the metal in LME warehouses have been rising and were last at
26,250 tonnes, a level unseen since Jan. 3. SHFE tin declined 1.3% to 216,420 yuan a tonne,
lead fell 0.6% to 15,255 yuan a tonne and nickel dropped 3.5% to 208,500 yuan a tonne.
LME tin declined 0.2% to $27,295 a tonne while lead rose 0.6% to $2,090 a tonne.
For the top stories in metals and other news, click or ($1 = 6.8240 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and
Sherry Jacob-Phillips)
mai.nguyen.thomsonreuters.com@reuters.net))
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