Copper range-bound as investors navigate mixed market signals
A stronger U.S. dollar remained a drag for the base metals complex, as it makes commodities priced in the greenback more expensive for buyers using other currencies.
Traders are still closely monitoring prospects for the Federal Reserve's rate cuts. However, hopes of stronger seasonal demand in top consumer China lingered, supporting prices of the red metal used in power and construction sectors.
The most-traded copper contract on the Shanghai Futures Exchange closed daytime trade 0.16 per cent lower at 78,890 yuan (US$10,985.02) per metric ton.
The benchmark three-month copper on the London Metal Exchange, however, added 0.36 per cent to US$9,769 a ton, as of 0725 GMT.
Copper markets will be closely watching EU and U.S. manufacturing Purchasing Managers Index (PMI) data releases due on Thursday.
Softer numbers will reinforce current demand concerns while any upside surprises could provide short-lived support, analysts at consultancy Benchmark Mineral Intelligence (BMI) said in a note.
China's imports of refined copper remained weak due to unfavourable arbitrage between SHFE and LME warehouses, BMI analysts said, expecting the import premium to continue at a low level as domestic copper production keeps increasing.
Additionally, output in Peru, the world's third-largest copper producer, rose 7.1 per cent year-on-year in June, thanks to the robust increase at the MMG-controlled Las Bambas mines.
However, China's latest pledge to continue boosting consumption reignited demand hopes.
SHFE aluminium dipped 0.22 per cent, nickel dropped 0.37 per cent, zinc shed 0.69 per cent while lead advanced 0.21 per cent and tin climbed 0.46 per cent.
LME aluminium fell 0.48 per cent, nickel lost 0.11 per cent, zinc ticked down 0.04 per cent while lead gained 0.66 per cent and tin advanced 0.68 per cent.
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