(Updates prices)
Feb 28 (Reuters) - London copper prices were headed for
their first monthly drop in four on Tuesday, weighed down by a
firmer U.S. dollar and as demand from top consumer China
remained subdued.
Three-month copper on the London Metal Exchange rose
0.1% to $8,812.50 a tonne by 0839 GMT, but the contract was down
4.5% on a monthly basis, its first decline since October.
The most-traded April copper contract on the Shanghai
Futures Exchange closed up 0.5% at 69,050 yuan
($9,950.57) a tonne, but was down for the month.
Copper prices rose strongly in January as hopes grew for a
strong consumption recovery from China, which accounts for half
of global copper demand, after the country lifted strict
pandemic restrictions.
However, copper demand in China remained weak in February,
weighing on the prices, while a stronger dollar also made the
greenback-priced metal more expensive to holders of other
currencies.
Analysts expect the Chinese economy to recover strongly from
as early as March, as the government is likely to roll out more
stimulus at the National People's Congress.
Copper inventories buildup in China slowed last week. The
weekly increase in SHFE copper stockpiles by Friday was the
slowest so far this year. Yangshan copper premium , which reflects demand
to import copper into China, rose to $26.50 a tonne on Monday,
its highest since Feb. 1.
"The downstream procurement is gradually recovering, and the
market needs to pay attention to when the accumulation of
warehouse inventories will end," Huatai Futures said in a
report.
LME aluminium fell 0.4% to $2,354 a tonne, zinc shed 0.8% to $2,965 a tonne, nickel decreased
0.6% to $25,355 a tonne, tin was down 1% at $25,230 a
tonne and lead declined 1.3% to $2,084 a tonne.
SHFE aluminium increased 0.2% to 18,460 yuan a
tonne, nickel was up 0.7% at 197,930 yuan a tonne and
zinc advanced 0.2% to 23,155 yuan a tonne, while tin fell 0.3% to 209,230 yuan a tonne.
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(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
mai.nguyen.thomsonreuters.com@reuters.net))
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