Copper bounces from 3-week low; Fed decision in focus

Copper rose marginally from a more-than-three-week low on Wednesday, even as investors expect the US Federal Reserve to hike interest rates later in the day. Three-month copper on the London Metal Exchange rose 0.53% to $14,158 a metric ton by 0330 GMT, after touching $13,926 on Tuesday. The most-traded copper contract on the Shanghai Futures Exchange gained 0.64% to 107,610 yuan ($16,037.97) a ton. Markets were pricing in an over 90% chance of a 25-basis-point Fed rate hike, up from near 60% a week earlier, in the face of sticky inflation. Higher interest rates typically pressure economic growth, a headwind for industrial metals. The dollar hovered near a two-week high, while oil prices remained above $100 a barrel, adding to inflation concerns. Jinrui Futures, a Chinese broker, said falling treatment charges, weak smelter margins and low inventories provided support to the red metal. Signs of firmer physical demand in top consumer China also emerged. The Yangshan copper premium, a gauge of Chinese demand for imported copper, rose to $110 a ton on Tuesday, the highest since early August. Exchange inventories, however, continued to build. Copper stocks in LME-registered warehouses