Most base metals decline on firm dollar, profit taking

Prices of almost all base metals fell on Tuesday, pressured by profit-taking and a stronger dollar that made greenback-priced metals more expensive to holders of other currencies.

Three-month copper on the London Metal Exchange (LME) fell 0.3% to $9,062.50 per metric ton by 0829 GMT, and the most-traded May copper contract on the Shanghai Futures Exchange (SHFE) closed down 0.2% at 72,920 yuan ($10,128.62) a ton.

The dollar index was stronger, backed by a weaker yen and investors adjusting their expectations of the pace and scale of interest rate cuts by the U.S. Federal Reserve this year following still-sticky inflation data.

"There's no fundamental reason for copper to be up here, but I can imagine some market participants would want to take some money off the table ahead of the FOMC meeting," said a trader, referring to the Fed gathering on interest rates.

"It's profit-taking ... prices are all the way back down to earth. Near-term price (is likely) back to $8,600 a ton for copper," the trader added.

LME aluminium fell 0.5% to $2,266.50 a ton, nickel decreased 1.4% to $17,630, zinc declined 1% to $2,506, and lead lost 0.3% to $2,084.50.

LME tin dropped 2.6% to $27,950, on track for the first decline in five sessions, as supply disruption in major producer Indonesia showed signs of easing after the top miner there resumed exports for the first time this year in March.

SHFE aluminium edged down 0.3% to 19,215 yuan a ton, nickel tumbled 2.1% to 137,460 yuan, zinc declined 1.2% to 21,130 yuan and lead eased 0.3% to 16,215 yuan. Tin, though, rose 0.1% to 228,060 yuan.

Indonesia has issued mining production quotas of 152.62 million tons of nickel ore and 44,481.63 tons of tin ore so far this year.