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Copper prices fell in London on Wednesday as weak manufacturing data and a struggling property sector in top consumer China soured sentiment.
Three-month copper CMCU3 on the London Metal Exchange (LME) dropped 0.6% to $8,582 per metric ton by 1051 GMT.
Copper, used in power and construction, is down 0.9% so far this week as the market waits for clarity on concrete measures by China to boost its economic recovery after the January removal of COVID-curbs.
“China’s post-reopening recovery has not met market expectations and the new data this week offered new evidence that the stimulus measures already introduced in the last couple of months are failing to have a meaningful impact,” said ING analyst Ewa Manthey.
“It looks like China is likely to finally release new stimulus measures but we will have to see what that stimulus looks like and if it will be enough in the long term to boost demand for metals.”
The Yangshan copper premium SMM-CUYP-CN, which indicates demand interest to import copper into China, fell to $29 per metric ton, the lowest since May 18.
Also weighing on the market was a stronger U.S. currency, which makes dollar-priced commodities less attractive for buyers holding other currencies. FRX/
Total copper inventories in LME-registered warehouses rose to a fresh two-month peak of 75,275 metric tons after the arrival of 1,200 tons, daily LME data showed.
LME aluminium CMAL3 dipped 1.3% to $2,227 per metric ton, zinc CMZN3 fell 1.1% to $2,540, lead CMPB3 eased 0.1% to $2,144.5, nickel CMNI3 shed 2.0% to $21,910 and tin CMSN3 lost 1.8% to $27,225.
The premium for cash tin over the three-month contract CMSN0-3 swung to a discount for the first time since mid-April, indicating easing of concerns about metal availability in the LME system. The discount was at $99 per metric ton at the market close on Tuesday compared with a premium of $1,700 on June 21.