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Updates prices, adds quotes
April 20 (Reuters) – Copper prices fell on Thursday, after a Federal Reserve policymaker’s comments hinted at further U.S. interest rate hikes as inflation still remained at “problematic” levels.
Three-month copper on the London Metal Exchange CMCU3 fell 0.3% to $8,939 a tonne by 0426 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 declined 0.3% to 69,390 yuan ($10,072.87) a tonne.
“The interest rate hiking pace looks set to continue in the United States. China demand is still not there,” said a metals trader.
Federal Reserve Bank of New York President John Williams said Wednesday that inflation is still at problematic levels and the U.S. central bank will act to lower it.
A Reuters poll of economists showed that the U.S. Federal Reserve is likely to deliver a final 25-basis-point interest rate increase in May and then hold the rates steady for the rest of 2023, and a short and shallow recession this year is likely.
Higher interest rates in the United States usually translates to a firmer dollar, which makes greenback-priced metals more expensive to holders of other currencies.
Yangshan copper premium SMM-CUYP-CN, which indicates the demand for imported copper into top consumer China, was at $27.50 a tonne on Tuesday, down 45% from nearly five weeks earlier, SMM data on Refinitiv Eikon showed.
LME aluminium CMAL3 shed 0.4% to $2,435 a tonne, nickel CMNI3 fell 0.2% to $25,505 a tonne, zinc CMZN3 eased 0.2% to $2,785.50 a tonne, lead CMPB3 decreased 0.5% to $2,145 a tonne and tin CMSN3 dropped 1.7% to $26,615 a tonne.
SHFE zinc SZNcv1 dropped 1.6% to 22,025 yuan a tonne, tin SSNcv1 decreased 1.4% to 217,350 yuan a tonne, while aluminium SAFcv1 rose 0.6% to 19,120 yuan a tonne and nickel SNIcv1 advanced 0.1% to 195,520 yuan a tonne.
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($1 = 6.8888 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Rashmi Aich and Uttaresh Venkateshwaran)
((mai.nguyen@thomsonreuters.com; Reuters Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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