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Copper dipped to its lowest price in more than eight weeks on Monday on weak industrial data from top consumer China.
Three-month copper CMCU3 on the London Metal Exchange fell 1.3% to $9,614 a metric ton during official rings for its lowest since April 18. It has lost 13% from the record high hit in May at $11,104.50.
“Some copper users returned to buying at the $9,600 to $9,700 level but many cancelled this morning after Chinese data came out. They are waiting to see if prices will go down further,” a trader said.
Demand prospects for the industrial metal were clouded by the latest data from China, where May industrial output growth slowed to 5.6%, missing a forecast of 6%.
A property market slump, high local government debt and deflation remained top concerns in the world’s second-largest economy.
Copper stocks also grew, pointing to lacklustre demand, with 4,050 tons delivered to LME-registered warehouses, mainly in Asian locations, exchange data showed on Monday.
There was also a major inflow for lead, with 9,600 tons going into Singapore sheds, sending inventories to a four-week high after shrinking by more than a third since April.
Lead CMPB3 was last up 0.4% at $2,148 a ton.
In other metals, aluminium was down 0.7% at $2,500.50 a ton after China said it produced 3.65 million tonnes of aluminum in May. The output level was close to its highest in 10 years.
LME nickel CMNI3 lost 1.2% to $17,370 a ton and tin CMSN3 declined 1.5% to $31,850 while zinc CMZN3 advanced 1.3% to $2,802.