BEIJING, Jan 29 (Reuters) - Copper prices slid on Monday as a firm dollar ahead of U.S. economic data and caution over top consumer China's demand offset raw material supply concerns.
Three-month copper on the London Metal Exchange slid 0.5% to $8,499 per metric ton by 0606 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange was down 0.3% to 68,790 yuan ($9,577.31) per ton.
The dollar started the week on a steady footing as investors took stock of U.S. economic data ahead of the Federal Reserve policy meeting this week, while escalating geopolitical tensions in the Middle East kept risk sentiment in check.
A firmer dollar makes it more expensive for non-dollar holders to purchase the greenback-priced commodity.
LME copper contract recorded its best weekly gain last week since November, boosted by a deep cut by China to bank reserves.
However, optimism started to fade last Friday, with China's industrial firms recording
a second yearly decline
in profits in 2023.
Recent demand also slowed down as copper users gradually start the Chinese New Year holiday early, resulting in weak spot trading and inventory build-up, analysts at Nanhua Futures said.
SHFE on-warrant copper stocks climbed for a fifth week
in a row last Friday to 50,532 tons
Also weighing on the market was supply tightness of mined copper, which led to Chinese smelters proposing
production cuts
.
Elsewhere, LME zinc lost 0.7% to $2,558.50 a ton, aluminium declined 1.4% to $2,243, nickel fell 1.9% to $16,465, lead eased 0.5% to $2,152.50 and tin slipped 0.6% to $26,510.
SHFE zinc shed 0.4% to 21,345 yuan a ton, nickel slid 1.6% to 129,050 yuan, lead moved 0.4% lower at 16,230 yuan, tin lost 0.9% to 220,680 yuan, and aluminium slipped 0.6% to 18,920 yuan.
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($1 = 7.1826 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Rashmi Aich and Sohini Goswami)
