SHANGHAI, Dec 10 (Reuters) - Copper prices hovered below record highs on Wednesday, as investors braced for a possibly hawkish guidance from the U.S. Federal Reserve following its two-day policy meeting.
The most traded copper contract on the Shanghai Futures Exchange SCFcv1 was down 0.37% at 91,720 yuan ($12,987.27) a metric ton as of 0315 GMT.
Meanwhile, the benchmark three-month copper CMCU3 on the London Metal Exchange gained 0.67% to $11,564 a ton.
Copper's upward momentum unwound as the Fed's rate decision approached, with the market expecting a "hawkish cut" in December at a time when inflation concerns lingered and resilience in the United States' economy remained, dampening hopes for more cuts next year.
Caution over future rate cuts has led investors to scale back their positions, and expected supply strain outside the U.S. is keeping prices elevated and volatile, analysts at Chinese broker Jinrui said in a note.
Copper prices were recently driven to record highs by expectations that supply will remain tight outside the U.S. market and by mine disruptions.
Meanwhile, China's consumer inflation accelerated to a 21-month peak in November, but factory-gate deflation persisted even as the government stepped up its campaign to curb overcapacity in some key sectors.
Elsewhere in the market, shareholders of Canadian miner Teck Resources TECKb.TO on Tuesday approved the merger with Anglo American AAL.L, paving the way for the case to move to the regulators' table for review.
Among other metals on SHFE, aluminium SAFcv1 dipped 0.34%, zinc SZNcv1 dropped 0.43%, lead SPBcv1 lost 0.84%, nickel SNIcv1 declined 0.73% and tin SSNcv1 posted sole gain at 0.72%.
Among LME metals, aluminium CMAL3 gained 0.63%, zinc CMZN3 added 0.49%, lead CMPB3 was up 0.33%, nickel CMNI3 gained 0.31% and tin CMSN3 rose 1.11%.
Wednesday, December 10
DATA/EVENTS (GMT)
0600 US WSD Wheat, Corn, Soybean endstocks 25/26 Dec
0600 US World Soy, Wheat, Corn E/S 25/26 Dec
($1 = 7.0623 yuan)
(Reporting by Dylan Duan and Lewis Jackson; Editing by Eileen Soreng)
((Dylan.Duan@thomsonreuters.com;))
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