(Recasts, updates prices)
BEIJING, May 10 (Reuters) - Copper prices were under
pressure on Wednesday as expectations of prolonged tepid demand
offset support from a softer dollar, while trading remained
cautious ahead of key U.S. inflation data.
Three-month copper on the London Metal Exchange was
down 0.6% at $8,539.50 a tonne as of 0751 GMT, while the
most-traded June copper contract on the Shanghai Futures
Exchange ended day-time trade 0.2% lower at 67,240 yuan
($9,727.87) a tonne.
Investors are awaiting key U.S. consumer prices data to be
released later in the day, which will provide more clues on the
Federal Reserve's monetary policy path.
Amid caution, the dollar eased marginally on Wednesday after
U.S. President Joe Biden and top lawmakers failed to break a
deadlock on the debt ceiling crisis.
Any rebound in copper prices might be capped as tepid demand
is expected to stay for at least the second quarter, analysts at
Meierya Futures said, adding the increases in inventories
outside of China added further pressure to global prices.
Copper inventories in LME-approved warehouses
have climbed 40% to 71,675 tonnes since April 18.
Copper inventories in SHFE warehouses have been
declining but at a slower rate recently.
Meanwhile, Peru's March copper production leapt 20.4% from a
year earlier to reach 219,275 tonnes, the country's energy and
mining ministry said on Tuesday, as large mines resume their
operations following stoppages due to social protests.
Among other metals, LME aluminium dipped 0.5% at
$2,307.50 a tonne, tin eased 0.4% to $25,890, zinc trimmed 1.2% to $2,642.50, lead slid 0.6% to
$2,124, while nickel gained 0.2% to $23,550.
SHFE aluminium eased 0.1% to 18,295 yuan a tonne,
nickel fell 2.2% to 179,460 yuan, tin was down
1.8% at 207,530 yuan, zinc dipped 0.3% to 21,395 yuan,
while lead ticked up 0.2% to 15,285 yuan.
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(Reporting by Siyi Liu and Dominique Patton; Editing by Sonia
Cheema and Varun H K)
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