Copper prices held steady just below record highs on Wednesday, as investors braced for a possibly hawkish guidance from the U.S. Federal Reserve following its two-day policy meeting.

The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading down 0.23% at 91,850 yuan ($13,005.86) a metric ton.

Meanwhile, the benchmark three-month copper on the London Metal Exchange gained 0.68% to $11,565.50 a ton as of 0710 GMT.

Copper’s upward momentum unwound as the Fed’s rate decision approached. The market expects a “hawkish cut” at a time when inflation concerns and resilience of the United States’ economy dampened hopes for more cuts next year.

Caution over future rate cuts has led investors to scale back positions, and expected supply strain outside the U.S. is keeping prices elevated and volatile, analysts at Chinese broker Jinrui said in a note.

Meanwhile, China’s consumer inflation accelerated to a 21-month peak in November, but factory-gate deflation persisted even as the government stepped up its campaign to curb overcapacity in some key sectors.

Elsewhere in the market, shareholders of Canadian miner Teck Resources on Tuesday approved the merger with Anglo American, paving the way for the case to move to the regulators’ table for review.

Among other metals on SHFE, aluminium dipped 0.25%, zinc dropped 0.26%, lead lost 0.70%, nickel declined 0.56% and tin posted the sole gain of 2.22%.

Among LME metals, aluminium gained 0.33%, zinc added 0.15%, lead was up 0.45%, nickel gained 0.31% and tin surged 2.39%.
Source: Reuters