Mumbai, 20 Feb (Commoditiescontrol): London Metals Exchange (LME) Copper prices declined on Tuesday in volatile trade, pressured by a stronger U.S. dollar, while traders weighed demand prospects in top consumer China after the Lunar New Year break.
Prices were briefly up after China cut the benchmark reference rate for mortgages at a monthly fixing as authorities ramped up efforts to stimulate credit demand and revive the property market.
The five-year loan prime rate (LPR) was lowered by 25 basis points to 3.90% from 4.20% previously, while the one-year LPR was left unchanged at 3.45%.
Three-month copper on the LME was down 0.08% to $8,427.50 per metric ton.
The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) fell 0.1% to 68,360 yuan ($9,497.87) a ton.
In the broader currency market, the dollar edged higher, though moves were largely subdued due to a U.S. holiday on Monday. A stronger U.S. currency makes dollar-priced metals more expensive for holders of other currencies.
With China's return from the Lunar New Year holiday break, traders and analysts will be looking for clues to demand over the coming weeks amid prospects of a pick-up in construction activity as winter draws to an end.
Among other metals, LME aluminium fell 0.2% to $2,193.50 a ton, nickel edged lower 0.3% to $16,300, zinc was down 0.3% to $2,394.50, lead decreased 0.2% to $2,038.50 and tin fell 0.5% to $26,315.
SHFE aluminium edged lower 0.9% to 18,685 yuan a ton, nickel was up 0.4% at 126,880 yuan, tin fell 0.3% to 217,360 yuan, zinc rose 0.1% to 20,340 yuan, and lead was down 1% to 15,840 yuan.
(By Commoditiescontrol Bureau: 09820130172)
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