(Adds SHFE copper stocks, updates prices)
BEIJING, March 10 (Reuters) - Copper prices slid on
Friday, heading for weekly losses as fears over persistent
interest rate hikes by the U.S. Federal Reserve weighed on
investor sentiment, while improving supply prospects added
downward pressure on the market.
Three-month copper on the London Metal Exchange was
down 0.7% at $8,793.50 a tonne by 0727 GMT. It has lost 2.1%
this week.
The most-traded April copper contract on the Shanghai
Futures Exchange ended the day trading 0.7% lower to
68,810 yuan ($9,877.13) a tonne.
Federal Reserve Chair Jerome Powell's remarks about upcoming
interest rate hikes aimed at fighting stubbornly high inflation
exacerbated concerns over economic activities and global demand
of industrial metals.
Investors are awaiting U.S. non-farm payrolls and
unemployment data due at 1330 GMT.
The hawkish Fed and weak February consumption data in
China weighed on sentiment, with most risky asset classes
suffering from a risk-off tone, and the higher than expected
output added to the malaise, analysts at ANZ Research said in a
note.
China, the world's top copper smelter, produced 907,800
tonnes of refined copper in February, up 6.5% on-year and
slightly higher than the expected 900,000 tonnes, according to
Shanghai Metals Market, anticipating March output to reach
949,500 tonnes.
Improved situations in Peru, Indonesia and Panama also eased
worries over copper supply, although Fitch Ratings warned on
Thursday that mining companies in Peru could face "material
risk" due to extended protests and blockades.
Apart from improving supplies, demand in China is gradually
picking up, reflected by a decline in stocks, participants said.
Copper stocks in SHFE warehouses ticked down for a second
consecutive week to 214,972 tonnes on Friday, 10.8% less
comparied with last Friday.
LME aluminium shed 0.7% to $2,311 a tonne, zinc dropped 1.3% to $2,934, lead dipped 0.3% to
$2,078.50 and tin fell 2.2% to $22,830 a tonne.
SHFE aluminium lost 1.4% to 18,265 yuan a tonne,
nickel fell 4% to a four-month low at 179,670 yuan,
zinc slid 1.6% to 22,870 yuan, lead eased 0.2%
to 15,155 yuan, and tin lost 3.8% to 186,950 yuan.
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(Reporting by Siyi Liu and Dominique Patton; Editing by Rashmi
Aich and Varun H K)
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