(Updates prices)
BEIJING, March 22 (Reuters) - Copper prices were little
changed on Wednesday amid cautious sentiment ahead of the U.S.
Federal Reserve's interest rate decision, while being
underpinned by firm market fundamentals.
Three-month copper on the London Metal Exchange was
unmoved at $8,759 a tonne by 0804 GMT, having recovered this
week from a two-month low hit last Wednesday due to a large
sell-off over a banking crisis, as regulators moved to rescue
First Republic Bank and European lender Credit Suisse.
The Fed began a two-day meeting from Tuesday, and investors
are divided about whether the central bank will raise interest
rates by 25 basis points on Wednesday or place a pause on hikes
for the month.
The dollar was pinned near five-week lows on Wednesday,
making it more attractive for non-dollar holders to buy the
greenback-priced commodity.
The most-traded May copper contract on the Shanghai
Futures Exchange ended day trading 1% higher at 68,080
yuan($9,881.42) a tonne.
Despite macro uncertainty, markets were also aided by firm
fundamentals as demand from top consumer China improved, against
the backdrop of constrained supply.
One signal of a brightening picture in China is that the
1-month price on SHFE has moved back above the equivalent LME
price, metal derivatives broker AMT said in a note.
The reopening of arbitrage window in China will likely cut
its overseas shipments and help to underpin LME prices in the
weeks ahead, it added.
LME aluminium eased 0.1% at $2,265 a tonne, zinc slid 0.5% to $2,850, tin was down 0.1% to
$23,025, while lead gained 0.5% to $2,105.50 and nickel
climbed 1.3% to $22,805.
SHFE aluminium edged up 0.2% to 18,205 yuan a
tonne, nickel rose 1.4% to 177,310 yuan, tin advanced 1.9% at 189,130 yuan, while zinc shed 0.8% to
22,355 yuan, lead dipped 0.1% to 15,340 yuan,
Chinese spot treatment charges for zinc concentrate slipped
from their highest in more than two years in March, and will
likely fall further on high smelter utilisation rates and a
demand recovery in its biggest consuming market.
For the top stories in metals and other news, click or ($1 = 6.8897 Chinese yuan renminbi)
(Reporting by Siyi Liu and Dominique Patton; Editing by Varun H
K and Louise Heavens)
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