BEIJING, April 3 (Reuters) - Copper prices slipped on
Monday, as a slowdown in top consumer China's factory activity
growth fanned demand concerns, and the U.S. dollar firmed over
renewed inflation fears.
Three-month copper on the London Metal Exchange eased 0.5% to $8,951 a tonne by 0221 GMT, and the most-traded
May copper contract on the Shanghai Futures Exchange dipped 0.1% to 69,340 yuan ($10,067.81) a tonne.
Weighed by slowing production and weaker global demand, the
Caixin/S&P Global manufacturing purchasing managers' index (PMI)
fell to 50.0 in March. That followed February's reading of 51.6,
which indicated the first monthly expansion in seven months.
The reading far missed expectations of 51.7 in a Reuters
poll, and echoed slower growth in an official PMI released on
Friday. The 50-point index mark separates growth from
contraction on a monthly basis.
The U.S. dollar started the week higher, as fears over
inflation resurfaced after a surprise announcement by major oil
producers to cut production further, with traders wagering the
Federal Reserve may need to increase interest rates at its next
meeting.
A stronger dollar makes it less attractive for non-dollar
holders to buy the greenback-priced commodity.
SHFE aluminium eased 0.3% 18,680 yuan, zinc declined 0.6% to $22,630 yuan, lead shed 0.7%
to 15,185 yuan, tin fell 1.9% to 203,680 yuan, while
nickel was up 1.2% to 177,100 yuan a tonne.
LME aluminium eased 0.6% at $2,398 a tonne, zinc shed 0.7% to $2,902.50, nickel slid 1.1% to
$23,570, lead slipped 0.3% to $2,100 and tin was
down 0.9% at $25,600.
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(Reporting by Siyi Liu and Dominique Patton; Editing by Varun H
K)
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