Three-month copper on the London Metal Exchange dipped 0.2% to $9,185 a tonne by 0124 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange was up 0.9% to 70,440 yuan ($10,253.28) a tonne. Investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation, with Wall Street posting its worst performance of the year on Tuesday.
The dollar held on to modest gains against its peers on Tuesday, making it less attractive for non-dollar holders to buy the greenback-priced commodity.
Despite economic headwinds, prospects of improving Chinese demand continue to dominate sentiment, ANZ Research said in a note, adding that this is aided by low inventories and ongoing supply side issues.
LME aluminium slid 0.6% to $2,452 a tonne, zinc declined 0.9% to $3,108 a tonne, lead eased 0.1%
to $2,140.50 a tonne and tin little changed at $27,530 a
tonne.
ShFE aluminium shed 0.4% to 18,730 yuan a tonne,
tin rose 2.7% to 220,820 yuan a tonne, zinc climbed 0.2% to 23,545 yuan a tonne, lead added 0.3% to
15,405 yuan a tonne, and nickel advanced 1.1% to
211,690 yuan a tonne.
BHP Group , the world's largest-listed miner, said
the London Metal Exchange's nickel contract does not represent
the physical market and reform is "long overdue".
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(Reporting by Siyi Liu and Dominique Patton; editing by
Uttaresh.V)
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