* Copper loses more ground on China worries, market cautious
* Rising inventories in Asia pressure copper prices
(Adds comment, detail)
By Naveen Thukral
SINGAPORE, April 26 London copper slid for a
second session on Tuesday, easing further from last week's
five-week peak amid doubts about demand in top user China and
concerns over rising Asian inventories.
Three-month copper on the London Metal Exchange had
fallen 1 percent to $4,948 a tonne by 0411 GMT. The most-traded
June copper contract on the Shanghai Futures Exchange
lost 1.8 percent to 37,620 yuan a tonne.
"A weaker U.S. dollar has failed to support base metals;
instead rising inventories were weighing on investors' minds,"
ANZ said in a research note.
It added that copper inventories in Asian warehouses have
jumped 8 percent to 72,675 tonnes, the highest since Jan. 20.
The metal gained nearly 5 percent last week when it touched
a five-week peak of $5,091 as investors returned after seeing
signs of stabilisation in China's economy including in
industrial output, loans and the property sector.
Asian stocks retreated as investors braced for central bank
policy meetings in the United States and Japan this week. The
dollar index, which tracks the greenback against a basket of six
major currencies, slid 0.2 percent to 94.682.
Trading across risk assets is expected to be subdued as
investors wait for the outcome of the Federal Reserve's two-day
meeting that starts on Tuesday.
A surprise drop in new U.S. home sales data for March
released on Monday supported a view of anaemic U.S. economic
growth, which may keep the U.S. central bank from raising
The Fed is expected to hold rates steady at this week's
meeting and markets are pricing in just about a one in five
chance of a hike at the next meeting on June 14-15.
On the technical front, copper is expected to rise
to $5,032, as it has found a support around $4,980 per tonne,
according to Wang Tao, Reuters market analyst for commodities
and energy technicals.
Top copper producer Codelco will scale back plans for its
Rajo Inca project, intended to extend the mine life of its
Salvador deposit, and an investment decision will be made within
two years, the company's chief executive said.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
(Reporting by Naveen Thukral; Editing by Joseph Radford)