Corrects rate in paragraph 3 to 3.95%, not 3.90%
NEW DELHI, Feb 20 (Reuters) – Copper edged lower 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) CNYLPR5Y=CFXS was lowered by 25 basis points to 3.95% from 4.20% previously, while the one-year LPR CNYLPR1Y=CFXS was left unchanged at 3.45%.
Three-month copper on the London Metal Exchange CMCU3 was down 0.08% to $8,427.50 per metric ton by 0249 GMT.
The most-traded March copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 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. FRX/
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.
“The metal (copper) is also expected to benefit from energy transition, with investment in renewable energy infrastructure in particular boosting demand enough to offset weakness in traditional manufacturing/industrial sectors,” ANZ Research said in a note.
Among other metals, LME aluminium CMAL3 fell 0.2% to $2,193.50 a ton, nickel CMNI3 edged lower 0.3% to $16,300, zinc CMZN3 was down 0.3% to $2,394.50, lead CMPB3 decreased 0.2% to $2,038.50 and tin CMSN3 fell 0.5% to $26,315.
SHFE aluminium SAFcv1 edged lower 0.9% to 18,685 yuan a ton, nickel SNIcv1 was up 0.4% at 126,880 yuan, tin SSNcv1 fell 0.3% to 217,360 yuan, zinc SZNcv1 rose 0.1% to 20,340 yuan, and lead SPBcv1 was down 1% to 15,840 yuan.
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($1 = 7.1974 Chinese yuan)
(Reporting by Neha Arora; Editing by Subhranshu Sahu)
((neha.dasgupta@thomsonreuters.com;))
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