Most base metals slip on firmer dollar, lacklustre China data

Prices of most non-ferrous metals fell on Tuesday, pressured by a firmer U.S. dollar and disappointing March data from top metals consumer China.

Three-month copper on the London Metal Exchange (LME) was down 0.9% at $9,490 per metric ton, as of 0756 GMT, and the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) closed down 0.5% at 76,730 yuan ($10,598.94) a ton.

The dollar hit a five-month high after hotter-than-expected U.S. retail sales figures raised more questions about when the U.S. Federal Reserve could begin cutting interest rates.

A firmer dollar makes greenback-priced metals more expensive to holders of other currencies.

In China, despite the economy growing faster than forecast in the first quarter, a raft of March indicators including property investment and industrial output showed that domestic demand remained frail and is retarding overall momentum.

"The market is focusing more on the misses of industrial production and retail sales of March and declining home sales," said Sandeep Daga, a director at metals analysis company Metal Intelligence Centre.

"Bulls are ahead of themselves. (There is) no green shoot. They worked too hard against the dollar strength and dull physical market and leaned heavily on one-month's purchasing managers index. Disappointment will follow."

Data released earlier this month showed better-than-expected manufacturing data in March, partially encouraging metals bull to push copper prices to the highest in nearly two years.

LME aluminium declined 1.2% to $2,524 a ton, zinc dropped 1.6% to $2,731, nickel shed 0.4% to $17,775, lead edged down 0.2% at $2,181 and tin lost 0.4% to $32,105.

SHFE aluminium dropped 3.3% to 20,165 yuan a ton, nickel dropped 2.9% to 134,540 yuan, zinc dropped 3.3% to 22,280 yuan, tin edged down 0.6% at 253,620 yuan, while lead rose 0.9% to 16,940 yuan.

Prices of aluminium and nickel retreated after rallying on Monday, as traders reassessed the impact of the new sanctions against Russian metals.