Base metals under pressure as recession fears build

BEIJING, According to some reports for April 13 Recession fears again dampened demand outlook could fuel a bullish rally in precious metals. As Prices of most base metals in London were under pressure on Thursday, despite support from a shaky U.S. dollar.

Three-month copper on the London Metal Exchange CMCU3 was unchanged at $8,919 a tonne, as of 0525GMT.

The most-traded May copper contract on the Shanghai Futures Exchange SCFcv1 rose 0.4%to 69,210 yuan ($10,069.84) a tonne.

Analysts say industrial metals will benefit from China's economic growth this year, while data of March copper imports reflected a softer-than-expected demand recovery.

China's copper imports fell 19% in March from a year earlier, according to customs data, as domestic production climbed and higher global prices restrained interest.

Minutes from the Federal Reserve's policy meeting last month showedofficials forecasting that the banking sector stress would tip the economy into recession.

Investors are cutting their bullish bets in major metals in the face of rising recession risks, analysts at ANZ said in a note.

LME aluminium CMAL3 held steady at $2,325 a tonne, lead CMPB3 dipped 0.1% to $2,127, nickel CMNI3 trimmed 0.5% at $23,465. Zinc CMZN3 was little changed at $2,784.50, while tin CMSN3 added 0.2% to $24,060.

Also The dollar was on the back foot on Thursday after cooler-than-anticipated U.S. inflation data lifted risk sentiment and stoked expectations that the Fed will pause itsmonetary tightening after hiking interest rates onelast time next month.

SHFE aluminium SAFcv1 advanced 0.4%to 18,510yuan, zinc SZNcv1 eased 0.2%to 21,945yuan, and lead SPBcv1 nudged up 0.3% to 15,325 yuan. Tin SSNcv1 climbed 1% to 192,700yuan, while nickel SNIcv1 slid 0.6%to 181,010yuan.

Chinese metal consumers will benefit from a likely appreciation of the yuan amid the country's ongoing credit and liquidity easing signals, Goldman Sachs said in a note.

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($1 = 6.8730 Chinese yuan renminbi)