NEW DELHI, April 5 (Reuters) – Copper prices edged higher on Wednesday in thin trade as Chinese markets were closed for a holiday, with a soft dollar supporting the metal even as weak U.S. data raised demand concerns.
Three-month copper on the London Metal Exchange CMCU3 was up 0.15% to $8,764.50 a tonne by 0238 GMT. The Shanghai Futures Exchange was closed due to the Qingming holiday.
The U.S. dollar was stuck near two-month lows as data suggested cooling in the U.S. labour market, bolstering views that the Federal Reserve is near the end of its monetary tightening cycle.
Some analysts projected stronger copper demand ahead.
“We are revising up our copper price forecasts to $9,000 a tonne, from $8,500 a tonne previously, as demand edges higher and global supply tightens,” Fitch Solutions Country Risk and Industry Research, a unit of Fitch Group, said in a report.
“Looking at demand, the outlook is positive going into the second quarter of 2023, with Mainland Chinese demand on track to rise significantly alongside growing demand from other global consumers as the green energy transition progresses.”
Among other metals, LME aluminium CMAL3 was down 0.3% at $2,363.50 a tonne, tin CMSN3 ticked 0.78% lower to $24,800, zinc CMZN3 was up 0.37% to $2,842, nickel CMNI3 moved down 0.04% to $23,115 and lead CMPB3 nudged 0.31% lower to $2,110.50.
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(Reporting by Neha Arora; Editing by Subhranshu Sahu)
((neha.dasgupta@tr.com))
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