HANOI, May 13 (Reuters) - Copper prices eased on Thursday,
as the dollar held gains on higher than expected U.S. inflation,
making greenback-priced metals more expensive for holders of
The most-traded June copper contract on the Shanghai Futures
Exchange closed 0.5% down at 75,970 yuan ($11,779.76) a
tonne. Three-month copper on the London Metal Exchange (LME)
dipped 0.1% to $10,440 a tonne at 0718 GMT.
The dollar was supported by higher Treasury yields after a
surprisingly strong rise in U.S. consumer prices fanned fears
over an increase in inflationary pressure.
The consumer price index jumped 0.8% last month, its largest
gain since June 2009. Economists polled by Reuters had forecast
that CPI would rise by 0.2%.
"The April CPI data ... was significantly higher than market
expectations. However, the current orientation of loose monetary
policy is not expected to change immediately," China-based
Huatai Futures said in a report.
"Fundamentally, we also need to focus on whether downstream
procurement can recover to a certain extent when prices fall. As
the current second quarter is still in the traditional peak
consumption season ... the recommendation to buy on dips is
still maintained for the time being."
* China will monitor changes in overseas and domestic
markets and effectively cope with a fast increase in commodity
prices, the state council said.
* Canadian miner Turquoise Hill Resources forecast
its full-year copper production at 150,000-180,000 tonnes,
slightly down from a previous estimate of 160,000-180,000
tonnes, after reporting first-quarter output up 29% year on year
at 45,449 tonnes.
* LME aluminium rose 0.1% to $2,482.50 a tonne,
nickel dropped 2% to $17,445 and tin declined
0.8% to $29,430.
* ShFE nickel was down 2.7% at 128,780 yuan a
tonne, tin lost 2.1% to 192,230 yuan while lead
retreated 2% to 15,305 yuan.
($1 = 6.4492 yuan)
(Reporting by Mai Nguyen
Editing by Rashmi Aich and David Goodman