"Copper trades lower on a combination of weak China imports and easing tensions in Peru pointing to a recovery in shipments," said Ole Hansen, head of commodities strategy at Saxo Bank in Copenhagen. Copper, used in the power, construction and transportation sectors, has lost 8% since reaching a seven-month high of $9,550.50 in January. The retreat has been driven by a strong dollar and the relatively slow revival of demand in China after it abandoned strict COVID-19 controls. China's unwrought copper imports in January and February were down 9.3% from a year earlier, customs data showed on Tuesday. Along with weak sentiment over China growth and the import data, ample inventories in Shanghai-monitored warehouses are adding pressure on copper, said Arthur Parish, metals associate at SP Angel.
Large copper mines in Peru, the world's second-biggest
copper producer, are cranking up activity again after protests
and blockades dented production, power data analysed by Reuters
showed.
The U.S. dollar index was up, reflecting strength
that makes dollar-priced metals more expensive for buyers
holding other currencies.
Foreign currency markets are focused on two days of
testimony by Federal Reserve Chair Jerome Powell to Congress,
which could provide a steer on the U.S. central bank's interest
rate policy.
LME three-month aluminium fell by 1.5% to $2,347 a
tonne, zinc shed 2.7% to $2,950.5, lead was down
1.9% at $2,083, while tin eased by 1.0% to $24,310.0 and
nickel lost 1.3% to $24,105.
For the top stories in metals and other news, click or (Reporting by Polina Devitt
Additional reporting by Mai Nguyen in Hanoi
Editing by David Goodman and Richard Chang)
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