BEIJING, Jan 3 (Reuters) - Prices of copper were under pressure on Wednesday because the U.S. dollar firmed as optimism about early and aggressive U.S. interest rate cuts waned.
Three-month copper on the London Metal Exchange (LME) slid 0.2% to $8,528.50 per metric ton by 0202 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange (SHFE) was down 0.2% to 68,660 yuan ($9,600.11) per ton.
The dollar index on Tuesday recorded its biggest daily increase since October, supported by higher U.S. bond yields, while investors waited for U.S. jobs data and European inflation numbers for clues on central banks' policies.
Investors bet the U.S. report will show a robust job market in the world's top economy, adding to the argument against the need for rate cuts as early as March.
Recent buying slowed down in China, the world's top metal consumer, due to seasonal weak demand and strong domestic production in December.
Yangshan copper premium, an indicator of import demand, fell
to $67.50 per ton, down by 67% from about one month earlier.
LME aluminium slipped 0.2% at $2,331.50 a ton, zinc shed 0.5% to $2,607, lead nudged down 0.1% to $2,063, while nickel gained 0.6% to $16,675, and tin added 0.2% to $25,235.
SHFE aluminium fell 0.8% to 19,425 yuan a ton, lead little moved at 15,945 yuan, nickel rose 1.2% to 128,530 yuan, tin added 0.4% at 210,360 yuan, and zinc was up 0.2% to 21,540 yuan.
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($1 = 7.1520 Chinese yuan renminbi) (Reporting by Siyi Liu and Mei Mei Chu; Editing by Mrigank Dhaniwala)
