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Copper continues to be steady despite data from China and the US

The copper price remained stable on Wednesday, as the market awaited data on loans from China's top consumer and U.S. Inflation numbers that may determine the direction in which U.S. Interest Rates will move.

The benchmark copper price on the London Metal Exchange was 0.10% higher, at $9.929 per metric ton of official rings.

Traders reported that volumes were low as consumers and producers were absent. The market was dominated by funds, which reacted to macro-factors.

China's loan data is due on September 10-15. Analysts will focus on the total social finance numbers, which they use as a gauge for industrial metals demand. They expect that August's figures are higher than July's.

Financial markets expect a quarter point cut in interest rates from the Federal Reserve, with a slight chance of a half point cut. The report on U.S. Consumer Inflation on Thursday may influence the possibility of a bigger cut.

The U.S. Dollar would fall when the Fed rate falls, making dollar-priced precious metals more affordable for holders of other currencies. This could increase demand.

Ed Meir, Marex analyst, said that "the dollar's weakness will likely provide some support, at least in the early part of September." If the Fed catches the markets by surprise, a stronger currency could lead to a downward trend in prices for the rest of the month.

A temporary halt in mining at Freeport McMoRan’s Grasberg mine, one of the largest copper mines in the world, was a major factor supporting copper.

Zinc stocks are also a focus In LME-registered warehouses, the 50,825 tonnage has dropped by nearly 75% from mid-April. The LME system is expected to lose another 15,375 tonnes of zinc due to cancelled warrants and/or zinc that was earmarked for shipment.

Concerns about zinc availability on the LME have led to a premium or backwardation with the forward cash contract for the next three months. The current price of a ton is around $18.

Lead was unchanged at $1,977. Tin rose 1% to $35,350. Nickel was slightly lower at $15,090.

(source: Reuters)