LONDON: Copper prices slipped on Wednesday to near the four-month lows hit earlier this week as the market fretted about weak demand in top consumer China after data showed the country's imports of the metal falling.
Benchmark copper on the London Metal Exchange was down 0.3 percent at $5,497 a tonne at 0911 GMT. Earlier it fell to $5,481.50 towards Monday's $5,462.50, the lowest since Jan 4.
"Economic data from China is the key to copper," said Quantitative Commodity Research analyst Peter Fertig.
"The figures for new loans due soon could give copper another dent as lower lending would cut the amount available for housing loans."
CHINA IMPORTS: Chinese imports of copper collapsed more than 30 percent in April from a month ago to 300,000 tonnes. Concentrate and ore imports tumbled 16.6 percent in April from a month earlier to 1.36 million tonnes.
LOANS: A Reuters poll predicted Chinese banks extended 714.0 billion yuan in new loans in April, down from 1.02 trillion yuan in March, though part of that was seen as a payback from the prior month's solid numbers and not necessarily the start of a sharp slowdown.
DOLLAR: A higher U.S. currency was also weighing on sentiment as it makes dollar-denominated metals more expensive for holders of other currencies, which potentially could subdue demand.
COPPER INVENTORIES: Also undermining copper market sentiment are higher stocks in LME approved warehouses, which at 339,200 tonnes are up more than 30 percent since April 28.
SCRAP: Supply of copper scrap has tightened recently after growing in the first quarter, while disruptions at major mines earlier in 2017 are hitting availability, the co-founder of metals hedge fund RK Capital Management said.
TIN: On the radar are tin stocks at 2,290 tonnes, the lowest since 1989 and less than one percent of global consumption estimated at around 350,000 tonnes this year.
PREMIUM: Fears of tin shortages on the LME market have created a premium for the cash over the three-month contract. The premium stood at $78 a tonne at the close on Tuesday. Benchmark tin was unchanged at $19,675.
LARGE HOLDINGS: Traders are also watching large holdings of aluminium, zinc, lead and tin cash contracts and warrants, which could also tighten nearby supplies on the LME market.
NICKEL: Nickel ore output in the Philippines, the world's top supplier, fell 51 percent in the first quarter due to rains and the suspension of mine operations, government data showed on Wednesday.
PRICES: Aluminium rose 0.1 percent to $1,873 a tonne, zinc lost 0.5 percent to $2,600, lead fell 0.7 percent to $2,159 and nickel slipped 0.4 percent to $9,175 a tonne.
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