Copper slips on hawkish Fed minutes, weak demand
BEIJING, May 23 (Reuters) -Copper prices fell on Thursday, dragged down by a stronger U.S. dollar after hawkish minutes of the Federal Reserve's meeting and weakening demand in top consumer China.
Three-month copper on the London Metal Exchange (LME) CMCU3 was down 0.9% to $10,325 per metric ton by 0133 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 fell 4% to 83,230 yuan ($11,492.05) a ton.
The dollar hovered near a one-week high on Thursday following its best day this month against major peers after minutes of the last Fed meeting revealed a willingness to raise interest rates among some officials.
A stronger dollar makes it more expensive to buy the greenback-priced commodity.
Also weighing on metals was the waning demand in China, as large price rises this year hit copper-user consumption and pushed inventories higher.
Other base metals trended lower. LME aluminium CMAL3 slid 0.2% to $2,631 a ton, nickel CMNI3 dropped 1.1% to $20,145, zinc CMZN3 shed 0.6% to $3,043, tin CMSN3 was little moved at $33,500, and lead CMPB3 was 0.6% lower to $2,301.
SHFE aluminium SAFcv1 lost 2.2% to 20,910 yuan a ton, zinc SZNcv1 dropped 2% to 24,395 yuan, tin SSNcv1 moved 2.2% to 272,790 yuan, lead SPBcv1 slid 0.6% to 18,440 yuan, and nickel SNIcv1 was down 3.6% to 152,080 yuan.
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DATA/EVENTS (GMT)
0500 Japan Chain Store Sales YY April
0715 France HCOB Mfg, Serv, Comp Flash PMIs May
0730 Germany HCOB Mfg, Serv, Comp Flash PMIs May
0800 EU HCOB Mfg, Serv, Comp Flash PMIs May
0830 UK Flash Comp, Mfg, Serv PMIs May
1230 US Initial Jobless Claim Weekly
1445 US S&P Global Mfg, Svcs, Comp Flash PMIs May
1400 EU Consumer Confid. Flash May
1400 US New Home Sales-Units April
($1 = 7.2424 Chinese yuan renminbi)
Reporting by Siyi Liu and Colleen Howe; Editing by Mrigank Dhaniwala
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