LONDON: Copper prices slipped on Monday as worries about demand resurfaced after weak data from China, though a softer dollar provided some support.
Benchmark copper on the London Metal Exchange (LME) traded 0.5% down at $8,387 a metric ton in official rings, having hit a two-month high of $8,486 last week.
Profits at China’s industrial companies rose 2.7% year on year in October, slowing from the 11.9% increase in September and 17.2% in August.
Traders said the numbers had triggered some profit-taking on long positions betting on higher copper prices. Copper prices have gained 7% since Oct. 23.
“Funds have been selling, but the dollar’s downtrend this month is a positive” one metal trader said. A falling US currency makes dollar-priced metals cheaper for holders of other currencies, which could boost demand.
On the technical front, strong resistance for copper stands at $8,455, the 200-day moving average. Major support comes in at $8,290, the 100-day moving average.
Elsewhere, nickel fell to a three-year low at $15,480 a ton, pressured by a looming increase to a global market surplus and a build-up of short positions betting on lower prices. It was last down 0.6% at $16,040 a ton.
In other metals, aluminium gained 0.2% to $2,221 a ton, zinc slipped 0.1% to $2,550, lead fell 1.1% to $2,172 and tin was down 0.6% at $23,750.
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