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METALS-London copper dips ahead of Fed rate decision

SINGAPORE, Sept 18 (Reuters) – London copper prices edged down and other industrial metals traded in tight ranges on Wednesday as investors awaited clues on the U.S. Federal Reserve’s future monetary policy.

Three-month copper on the London Metal Exchange (LME) dipped by 0.1% to $5,816.50 a tonne at 0716 GMT, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) eased 0.2% to 47,310 yuan ($6,673.63).

The Fed is widely expected to announce an interest rate cut when it concludes its two-day policy meeting later on Wednesday, with markets focusing on the statement and economic projections from policymakers.

“A rate cut would definitely push up prices (but only) in the very short term,” said CRU copper analyst He Tianyu, adding that prices would then fall back because a rate cut had been widely expected and demand for copper remainsweak.

LME aluminium slipped by 0.3%, nickel rose 1%, zinc fell 0.6% and lead was barely changed. ShFE aluminium edged 0.3% down, nickel was flat, zinc eased by 0.2% and tin fell 0.3%.

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