The most-traded May copper contract on the Shanghai Futures
Exchange ended daytime trade 0.2% lower at 69,470 yuan
($10,083.61) a tonne.
The Fed should continue raising rates after recent data
showed inflation remains persistent while the broader economy
seemed poised to continue growing, even if slowly, St. Louis
Federal Reserve President James Bullard told Reuters.
"Investors now hope that the Fed will give a clearer stance
on the outlook for future monetary policy," Huatai Futures
analysts said in a note.
Markets are pricing an 86% chance the Fed raises rates by 25
basis points at its meeting in May. "As the interest rate meeting is approaching, the U.S.
dollar may still have a chance to strengthen in a short period
of time, which may put pressure on the non-ferrous sector to a
certain extent," Huatai analysts said.
A firm dollar dents the appeal of greenback-priced metals.
The dollar steadied on Wednesday as investors
scrutinised U.S. economic indicators, Fed commentary and
corporate earnings for clues about the path for interest rates.
Benchmark LME tin was down 1.7% at $27,360 a tonne,
while Shanghai tin shed 1.5% to 219,030 yuan a tonne,
after both scaled 11-week peaks in the previous session.
A suspension of mining in Myanmar could lead to further
tightening of global supplies of tin, China's Yunnan Tin , the world's top refined tin producer, said on
Tuesday.
LME aluminium dropped 0.9% to $2,414 a tonne, zinc shed 0.9% to $2,846.50, lead dipped 0.1% to
$2,142, while nickel was little changed at $25,628 a
tonne.
SHFE aluminium rose 0.8% to 19,025 yuan a
tonne, nickel climbed 4.2% to 195,910 yuan, zinc steadied at 22,330 yuan, and lead added 0.5%
to 15,405 yuan.
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(Reporting by Enrico Dela Cruz in Manila; Editing by Rashmi
Aich and Louise Heavens)
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