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Copper prices declined on Monday on demand worries as data from top metals consumer China disappointed investors and showed signs of slowing in the world’s second-biggest economy.
Three-month copper on the London Metal Exchange CMCU3 fell 1.1% to $9,462 a tonne by 0610 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.1% to 69,770 yuan ($10,771.96) a tonne.
Both factory output and retail sales in China rose more slowly than expected in July from a year ago, as export growth cooled and new COVID-19 outbreaks disrupted business.
China is the world’s biggest copper consumer, and consumption of the metal is often used as a gauge of global economic health.
“The world seems to be slowly digesting the news that the post COVID-19 bounce back is not going to be a simple V-shaped recovery, but a long and hard road,” Malcolm Freeman, a director at UK broker Kingdom Futures, said in a note.
FUNDAMENTALS
China’s aluminium output in July slipped for a third month, with daily average levels at the lowest since October 2020, as continued power shortages kept smelter operating rates low.
LME aluminium CMAL3 dipped 0.2% to $2,594 a tonne, while ShFE aluminium SAFcv1 rose 0.5% to 20,130 yuan a tonne.
The difference between LME cash aluminium over the three-month contract CMAL0-3 flipped to a premium of $8.25 a tonne, having stayed in discount since the beginning of August, indicating tightening nearby supply.
LME lead CMPB3 dropped 1.1% to $2,309 a tonne and zinc CMZN3 fell 1% to $3,004 a tonne. ShFE lead SPBcv1 declined 0.4% to 15,380 yuan a tonne and tin SSNcv1 was down 0.4% to 236,800 yuan a tonne.
Chile’s Codelco said on Friday its Andina mine was operating at reduced levels due to a labour strike.
Source: Reuters