Sept 19 (Reuters) - Copper prices edged lower in Asian trading on Tuesday, as the overall mood was subdued ahead of interest rate decisions by central banks this week, with the U.S. Federal Reserve set to begin its two-day policy meeting later in the day.
Concerns that faltering post-pandemic economic rebound in China, the world's top metals consumer, could dampen demand and rising inventories in exchange warehouses are also dragging copper prices lower.
Three-month copper on the London Metal Exchange was down 0.5% at $8,320.50 per metric ton, as of 0700 GMT, after a 0.6% decline in the previous session.
The most-traded October copper contract on the Shanghai Futures Exchange shed 0.8% to 68,790 yuan ($9,426.52) per ton, extending losses following a 0.4% drop on Monday.
"Markets were quiet as investors wait for the FOMC meeting later this week," ANZ analysts said in a note.
"While the Fed is expected to keep rates on hold, strong economic data is raising the prospect of rates remaining high for the foreseeable future."
Traders were also keeping an eye on the depreciation pressure on China's yuan against the U.S. dollar, which could also affect Chinese demand for greenback-priced industrial metals.
The pressure is temporary, Chinese state media said on Tuesday, as the yuan has fallen more than 5% on the greenback year-to-date.
LME aluminium dipped 0.3% to $2,214.50 per ton, zinc shed 0.6% to $2,526, nickel slipped 0.2% to $19,840, while lead edged down 0.1% to $2,244.50. Tin slumped 2.2% to $25,600.
In Shanghai, aluminium gained 0.4% to 19,240 yuan a ton, zinc lost 0.3% to 21,710 yuan, lead added 0.7% to 17,275 yuan, nickel edged up 0.1% to 161,670 yuan, while tin fell 0.8% to 218,540 yuan.
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($1 = 7.2975 Chinese yuan)
(Reporting by Enrico Dela Cruz; Editing by Rashmi Aich)
