Sept 20 (Reuters) - Prices of copper moved in small ranges on Wednesday amid caution ahead of the U.S. Federal Reserve's rate decision expected later in the day, while rising inventories capped any strong gains.
Three-month copper on the London Metal Exchange rose 0.3% to $8,315 per metric ton by 0613 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange declined 0.3% to 68,790 yuan ($9,424.71) a ton.
LME copper inventories rose to the highest since May 2022 at
149,600 tons. SHFE inventories were at the highest since July
21.
"It is the monthly futures expiry week in LME. Surplus inventories have been showing up... This might keep metal prices under pressure," said Sandeep Daga, a director at metals analysis company Metal Intelligence Centre.
The dollar might strengthen amid expectations of higher-for-longer U.S. rates, which would add more pressure to metal prices, Daga said.
A firm dollar makes greenback-priced metals more expensive to holders of other currencies.
LME aluminium edged up 0.4% to $2,223.50 a ton, nickel rose 1% to $20,125, lead increased 0.1% to $2,222.50, zinc fell 0.3% to $2,491 and tin eased 0.4% to $26,000.
SHFE aluminium rose 0.1% to 19,305 yuan a ton, zinc dropped 0.8% to 21,615 yuan, nickel rose 1.5% to 163,930 yuan, lead was 0.6% higher at 17,310 yuan and tin climbed 0.5% to 221,170 yuan.
Combined nickel inventories in SHFE and LME warehouses were at 46,055 tons, the highest since March 30.
"Nickel is in a large surplus and will remain so in the foreseeable future. After some Chinese brands got registered with LME in recent months, stock inflows will continue," said Daga.
However, nickel ore supply concerns strengthened as an official in top-producer Indonesia said it would not approve any new mining output quotas this year.
For the top stories in metals and other news, click or
($1 = 7.2989 yuan) (Reporting by Mai Nguyen in Hanoi; editing by Eileen Soreng and Sohini Goswami)
