The most-traded June copper contract on the Shanghai Futures Exchange ticked up 0.5% to 67,370 yuan ($9,746.68) a tonne as of 0158 GMT, extending gains from the previous session. The contract was at its highest level since April 25. Inventories of the metal in SHFE warehouses were at a near four-month low. That coupled with expectations of slower domestic output growth in the following months due to smelters' regular maintenance. Also weighing on the sentiment was a hazy demand outlook as copper consumption in China from power, property and transportation has yet to show any strong recovery.
The dollar inched higher on Tuesday after a loans survey revealed that credit conditions in the United States were less gloomy than expected, while the pound flirted with a one-year peak ahead of this week's Bank of England policy meeting. A stronger dollar makes it less attractive for non-dollar holders to buy the greenback-priced commodity.
Investors are also awaiting U.S. inflation data later this week to get clarity on the Federal Reserve's monetary policy. SHFE aluminium slid 1% to 18,250 yuan a tonne, zinc dipped 0.1% to 21,415 yuan a tonne, lead shed 0.3% to 15,245 yuan a tonne, nickel fell 1.2% to 182,500 yuan a tonne, while tin was 0.8% higher at 209,890 yuan a tonne. The London Metal Exchange was closed on Monday due to a public holiday. For the top stories in metals and other news, click or ($1 = 6.9121 Chinese yuan renminbi) (Reporting by Siyi Liu and Dominique Patton; Editing by Sonia Cheema)
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