Copper futures edge lower after China CPI hits 5-year low

Copper prices edged lower on Tuesday, after data showed that inflation in China slowed to the lowest level in five years, underling concerns over a slowdown in the world's second largest economy.

On the Comex division of the New York Mercantile Exchange, copper for March delivery fell by as much as 0.8 cents, or 0.31%, to hit a session low of $2.572 a pound, before trading at $2.576 during European morning hours, down 0.4 cents, or 0.16%.

A day earlier, copper for March delivery dipped 0.5 cents, or 0.19%, to end at $2.580 a pound.

Futures were likely to find support at the $2.533, the low from February 5, and resistance at $2.615, the high from February 6.

A government report released earlier showed that Chinese inflation for January slowed to 0.8%, the lowest since November 2009, from 1.5% in December.

The producer price index fell by a more-than-expected 4.3% last month, giving policymakers in Beijing more room to ease monetary policy.

Data released earlier in the week showed that China's exports slumped 3.3% from a year earlier last month, while imports tumbled 19.9%, pointing to weak domestic demand.

The disappointing data added to speculation policymakers will have to introduce further stimulus measures to support the economy and boost growth.

China's central bank cut banks' reserve requirement ratios last week in an effort to boost lending and spur economic activity.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold futures for April inched up $1.80, or 0.14%, to trade at $1,243.30 a troy ounce, while silver futures for March delivery dipped 4.2 cents, or 0.25% to trade at $17.02 an ounce, as concerns over the Greek debt crisis kept investors cautious.

The euro remained under pressure amid concerns over Greece’s future in the euro zone as negotiations with the European Union over the country's debt and bailout continued.

Greek Prime Minister Alexis Tsipras has said he will deliver on pre-election pledges to roll back austerity measures and reject an international bailout extension.

Instead, he is seeking a new agreement to cover Greece’s funding needs until June.