(Updates prices)
Feb 14 (Reuters) - Copper prices edged higher on
Tuesday, as a weaker U.S. dollar made greenback-denominated
metals more attractive to holders of other currencies.
Three-month copper on the London Metal Exchange rose
0.2% to $8,958 a tonne by 0803 GMT, while the most-traded March
copper contract on the Shanghai Futures Exchange gained
0.8% to 68,680 yuan ($10,070.23) a tonne.
The dollar slipped as investors braced for the U.S. consumer
price index data due later in the day, amid tentative signs that
inflation there is cooling.
"Commodity markets will be eagerly awaiting today's U.S. CPI
data, which will shed some light on how much more work the U.S.
Fed (Federal Reserve) has to do to bring down inflation," ING
analysts said in a report.
Freeport-McMoRan Inc cut its first-quarter copper
sales forecast after heavy rains and landslides shut operations
at its Grasberg mine in Indonesia over the weekend, with the
mine not expected to be back online until the end of the month.
However, copper bulls are still exercising caution given the
lack of speedy demand recovery in top consumer China.
"Following the end of the Chinese New Year holidays, there
is a lack of consumption out of the region. Stimulus is not
being realised, ... sentiment is also low, with consumer
propensity to spend low," Sucden Financial said in a report.
"Metals are in contango, and with premiums low, underlying
consumption is not yet there."
LME aluminium advanced 0.7% to $2,428.50 a tonne,
while nickel fell 0.4% to $26,520 a tonne, zinc declined 0.3% to $3,087.50 a tonne and tin shed 1% to
$27,250 a tonne.
SHFE aluminium edged up 0.3% to 18,595 yuan a
tonne, zinc advanced 0.7% to 23,180 yuan and lead increased 0.2% to 15,270 yuan, while tin fell
0.7% to 215,480 yuan and nickel dropped 2% to 207,190
yuan.
For the top stories in metals and other news, click or ($1 = 6.8201 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu
and Eileen Soreng)
mai.nguyen.thomsonreuters.com@reuters.net))
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES ))
