- Oil falls on rising inventories, denting copper
- Zinc hits another three-week top on China imports
- Australia's Mincor puts nickel mine on care and maintenance
- Coming Up: FOMC statement at 1900 GMT
(Adds official midday prices)
Copper slipped on Wednesday after hitting its highest since Jan. 8 as oil resumed its fall and investors grew cautious ahead of a Federal Reserve policy meeting later in the day.
The metal was underpinned, however, by better than expected Chinese import data released a day earlier.
Oil fell as rising inventories wiped out optimism about possible supply cuts, deterring investors from buying commodity basket funds that include copper.
The Federal Reserve is expected to leave interest rates unchanged at this week's meeting, though investors are keen to see its latest economic outlook, given the turbulent start to the year for global financial markets.
"Everything is very much dependent on the Fed. Our view is the Fed will back off (rate rises). That will push the dollar lower and will be good news for base metals," said Naeem Aslam, AvaTrade chief market analyst.
A weaker dollar makes dollar-priced metals cheaper for non-U.S. investors.
Three-month copper on the London Metal Exchange CMCU3 traded down 0.7 percent in official midday rings at $4,505 a tonne, having earlier hit its highest since Jan. 8 at $4,549.50.
China imported a record volume of copper in 2015, trade data showed on Tuesday, which pushed prices higher.
But a cloud remained over the outlook for end-user demand, with profits earned by Chinese industrial companies falling 4.7 percent in December, the seventh straight month of declines.
China is the world's top metals consumer. Among other news, Chilean mining company Antofagasta
will lift copper output less than some analysts had expected. . Elsewhere, Indonesia's mines minister and Freeport McMoRan Inc
expressed confidence that they will find common ground to enable the U.S. mining giant to continue shipping copper concentrate for at least another six months. Zinc CMZN3 hit its highest since early January at $1,613 and traded up 0.5 percent in rings at $1,596.5. The metal jumped nearly 5 percent on Tuesday.
China's zinc imports surged by 440 percent in December from a year earlier as low prices forced local mines out of business and as galvanisers mopped up imported metal ahead of an expected shortfall later in the year. .
Indicating possible near-term tightness in supply, cash zinc flipped to a premium of $0.50 a tonne versus the three month price, its highest since last August. CMZN0-3
Nickel CMNI3 traded up 0.4 percent at $8,700. Australia's Mincor Resources (MCR) became the second Australian casualty of low nickel prices in as many weeks, saying it was preparing to put its nickel mine operations on care and maintenance.
Aluminium CMAL3 traded up 0.7 percent at $1,505, having hit its highest since early January at $$1,512.
Lead CMPB3 was last bid up 0.3 percent at $1,656, while tin CMSN3 was last bid down 0.7 percent at $14,050.
PRICES
Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1 ($1 = 6.5786 Chinese yuan)
