BEIJING: London copper prices slid on Monday, weighed down by demand concerns as disappointing China inflation data pointed to slow economic recovery in the world’s top metal consumer, despite some supply-side issues.
Three-month copper on the London Metal Exchange was down 0.5% to $8,326 per metric ton by 0459 GMT, following a marginal weekly gain.
China’s factory-gate prices fell at the fastest pace in seven-and-a-half years in June, while consumer inflation was at its slowest since 2021.
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Tepid demand for copper - used widely in power, construction and transportation sectors - has resulted in a spot discount for purchases this week, according to information provider Mysteel.
Also weighing on demand was a global economic slowdown, as reflected by a miss in U.S. jobs data last week.
Demand woes offset supply disruptions and low inventories in the market.
Chile, the world’s top copper producer, saw its production fall 14% on-year in May.
The low production has drawn down inventories, analysts at ANZ Research noted. Copper stocks in China’s bonded warehouses fell to a seven-month low in June.
China’s June refined copper production was estimated by the Shanghai Metals Market at 917,900 metric tons, missing expectations as some smelters prolonged their maintenance.
There have been hopes of more stimulus measures from the world’s second-biggest economy that could bolster demand for the industrial metal.
The most-traded August copper contract on the Shanghai Futures Exchange was little moved at 67,750 yuan ($9,364.59) per metric ton.
LME tin slid 1.1% to $28,040, zinc shed 0.4% to $2,353.50, lead stablized at $2,052.50, aluminium edged up 0.1% to $2,148, while nickel moved down 0.4% to $20,725.
SHFE zinc declined 1.1% to 19,935 yuan, nickel fell 2.3% to 161,030 yuan, tin lost 1.9% at 229,970 yuan, while aluminium increased 0.8% to 17,990 yuan a metric ton and lead nudged 0.1% up at 15,510 yuan.
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