Jan 19 (Reuters) - Copper prices firmed on Wednesday, supported by expectations of further policy easing in top metals consumer China offsetting pressure from a firmer U.S. dollar and rise in inventories.
Three-month copper on the London Metal Exchange was up 0.4% at $9,718 a tonne, as of 0725 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange ended flat at 70,020 yuan ($11,028.51) a tonne.
Sentiment in the metals market was supported by expectations of more rate cuts in China, analysts at ANZ said in a note. "Together with further measures, GDP growth should stabilise this year."
China's central bank will roll out more policy measures to stabilise the economy, vice governor Liu Guoqiang said on Tuesday, following the latest rate cut.
The dollar was steady after rising 0.5% on Tuesday, bolstered by a jump in U.S. Treasury yields in anticipation of rising interest rates.
Meanwhile, copper stocks in LME-registered warehouses climbed to their highest in two months at 94,525 tonnes, easing some concerns about supply tightness.
FUNDAMENTALS
* LME aluminium rose 0.2% to $3,029 a tonne, nickel was up 0.6% at $22,215, lead climbed 0.2% to $2,327.5, zinc eased 0.1% to $3,563 and tin inched 0.1% higher $42,345, a fresh record high.
* ShFE aluminium gained 1.8% to 21,530 yuan a tonne, nickel rose 0.2% to 163,760 yuan, zinc was 1.3% higher at 24,780 yuan and lead dropped 0.8% to 15,510 yuan. Tin was up 1.4% at 318,500 yuan a tonne, having earlier hit a record high of 319,870 yuan.
* Nickel inventories in LME-registered warehouses declined further to 94,872 tonnes, the lowest since December 2019. Supply worries kept the premium for LME cash nickel to the three-month contract near its highest in more than a decade at $370 per tonne.
* China's copper exports rose to an annual record of 932,451 tonnes in 2021, according to customs data.
* China's aluminium imports in December eased from the previous month, snapping three consecutive monthly gains, although imported volumes were strong enough to solidify 2021's position as a record year of shipments.
($1 = 6.3490 Chinese yuan)
Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu Sahu and Shounak Dasgupta
Source: Reuters