(Updates prices)
BEIJING, April 3 (Reuters) - Copper prices slid on
Monday, under pressure from a firmer U.S. dollar as inflation
concerns renewed, while a slowdown in China's factory activity
growth also weighed on investors' sentiment.
Three-month copper on the London Metal Exchange was
down 0.5% to $8,951 a tonne by 0742 GMT, and the most-traded May
copper contract on the Shanghai Futures Exchange ended
day trading 0.4% lower at 69,150 yuan a tonne.
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.
Among other metals, LME aluminium gained 0.4% at
$2,421.50 a tonne, lead climbed 0.6% to $2,119 and tin rose 0.2% to $25,895, while zinc shed 0.7% to
$2,901.50 and nickel nudged down 0.4% to $23,755.
The Caixin/S&P Global manufacturing purchasing managers'
index (PMI) fell to 50.0 in March, amid slowing production and
weaker global demand. 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.
In China's spot market, refined copper premium climbed as
suppliers lifted offer prices ahead of the Qingming Festival
holiday on Wednesday, traders said.
Participants also pointed to rising demand from the air
conditioning sector.
Planned production for air conditioning is forecast at 18.19
million units in April, up 4% from March and up 8.1% from the
same period a year ago, according to CITIC Futures.
SHFE aluminium eased 0.5% to 18,645 yuan, zinc declined 1.2% to 22,500 yuan, lead shed 0.8%
to 15,175 yuan, tin fell 1.2% to 205,040 yuan, while
nickel was up 2.9% to 179,900 yuan a tonne.
For the top stories in metals and other news, click or (Reporting by Siyi Liu and Dominique Patton; Editing by Varun H
K and Louise Heavens)
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