March 30 (Reuters) - Copper and most other base metals
in London edged down during Asian trading hours on Thursday,
with a firm dollar and economic uncertainty weighing on
sentiment.
Three-month copper on the London Metal Exchange was
down 0.3% at $8,980 a tonne, as of 0503 GMT, after three
straight days of gains.
Receding fears of a full-blown banking crisis have revived
overall investor risk appetite this week, but the dollar's advance dented the appeal of greenback-denominated metals
to buyers with other currencies.
This week's rebound in metal prices have also been curbed
amid the uncertain economic backdrop, analysts said.
"Inflation remains high, with central banks likely to keep
tightening monetary policy. The speed of China's economic
recovery has also been disappointing," ANZ commodities
strategists said in a note.
China's factory activity likely grew at a slower pace in
March, a Reuters poll showed on Wednesday, suggesting the
economic recovery is uneven in the light of weak global demand
and a property slump.
"Nevertheless, there are growing expectations that the
copper market will tighten as the headwinds ease. This could be
exacerbated by the low level of inventories," the ANZ
strategists said.
The most-traded May copper contract on the Shanghai Futures
Exchange (SHFE) ended morning trade 0.3% higher at
69,570 yuan ($10,093.14) a tonne.
Copper inventories in warehouses monitored by SHFE were down 11.6% last Friday, falling for a fourth
consecutive week to 161,152 tonnes.
LME aluminium fell 0.1% to $2,377 a tonne, zinc gained 0.1% to $2,969.50, nickel dipped 0.1% to
$23,730, lead shed 0.5% to $2,128.50, while tin was little changed at $25,810.
In Shanghai, aluminium was virtually flat at 18,685
yuan a tonne, zinc added 0.7% to 22,890 yuan, nickel fell 2% to 177,500 yuan, tin lost 0.3% to
206,040 yuan, while lead edged down 0.2% to 15,260
yuan.
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($1 = 6.8928 yuan)
(Reporting by Enrico Dela Cruz in Manila; editing by Uttaresh
Venkateshwaran)
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