Feb 18 (Reuters) - LME copper edged up in thin Asian trade on Wednesday, after falling to a more than one-week low in the previous session as high inventories of the red metal and a firm dollar pressured prices.
Benchmark copper (CMCU3) on the LME added 0.4% to $12,670.50 a metric ton as of 0219 GMT. It had fallen 1.8% on Tuesday.
“The dollar’s renewed strength this week has hindered the performance of base metals. Dollar-denominated metals feel the squeeze, especially in a market already starved of Asian liquidity,” said Tim Waterer, chief market analyst at KCM Trade.
The dollar held its ground on Wednesday as geopolitical risks kept markets on edge and investors awaited minutes from the Federal Reserve for signals on future rate cuts. (USD/)
A stronger U.S. dollar makes greenback-priced metals more expensive for holders of other currencies.
Copper stocks in LME-approved warehouses increased by 9,775 tons to 221,625 tons on Tuesday (MCUSTX-TOTAL) , the highest in 11 months.
“High inventories could take a little while to clear, given the holiday conditions,” Waterer said.
Meanwhile Chilean miner Antofagasta (ANTO.L) posted a 52% jump in annual core profit on Tuesday, as record high copper prices last year offset slightly weaker output. The miner said its increased capital spending would support production in the medium term.
In other metals, zinc prices ticked up 0.2% to $3,291.0 (CMZN3) , after touching a two-week low on Tuesday.
Aluminium (CMAL3) added 0.3% to $3,043.0, breaking a four-session losing streak. Lead (CMPB3) gained 0.1% to $1,947.50, tin (CMSN3) lost 1.3% to $45,425 and nickel (CMNI3) was up 0.2% at $16,895 a ton. Wednesday, February 18 DATA/EVENTS (GMT) 0700 UK Core CPI YY Jan 0700 UK CPI YY Jan 0700 UK CPI Services MM, YY Jan 0745 France CPI (EU Norm) Final MM, YY Jan 1300 US Durable Goods Dec 1300 US Housing Starts Number Dec 1415 US Industrial Production MM Jan 1900 US Federal Open Market Committee issues minutes from its meeting of January 27-28

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LME copper rose 0.4% to $12,670.50 per metric ton in thin Asian trade after hitting a one-week low, pressured by high inventories and a strong dollar. The dollar's strength has impacted base metals, with copper stocks in LME warehouses increasing to 221,625 tons, the highest in 11 months. Antofagasta reported a 52% rise in annual core profit, while other metals like zinc and aluminum also saw slight gains. Investors are awaiting the Federal Reserve's minutes for insights on future rate cuts.

METALS-LME copper edges up from over one-week low in thin Asia trade