LONDON: Copper fell for a fourth day on Wednesday after weaker than expected German manufacturing data pointed to lower demand, while the US dollar strengthened, making metals more expensive for holders of other currencies.
Industrial metals had steadied in early trade after a recent sell-off.
"The disappointing German manufacturing data then saw a quick lurch lower ahead of the London open, upon which systematic selling has re-emerged," brokers Marex Specton said in a note.
LME COPPER: Three-month copper on the London Metal Exchange traded down 0.2 percent at $5,605.50 a tonne in official rings. The metal used in power and construction is down 2 percent from a high of $5,720 on June 1.
COPPER TECHNICALS: Fund investors were buying copper off the lows and technical resistance was around $5,675-$5,690, Marex Specton said. "We still espouse selling rallies," it said.
COPPER STOCKS: Prices supported by a fall in stockpiles at LME-registered warehouses by 5,350 tonnes to 294,225 tonnes, down from a recent high of 340,350 tonnes in mid-May.
COPPER SPREAD: The discount of LME cash copper to the three-month contract rose to $30.20 a tonne from $14 two weeks ago, indicating tighter supply.
GERMAN FACTORIES: Data on Wednesday showed German industrial orders dropped far more than expected in April as factories lacked new contracts for big ticket items, suggesting the sector started the second quarter on a weak footing. {nL8N1J40QB]
DOLLAR: The dollar rebounded from a seven-month low.
LME ALUMINIUM: Aluminium traded flat at $1,903 a tonne in official rings, shrugging off disruption in exports from a plant in Qatar part-owned by Norway's Norsk Hydro .
ALUMINIUM TECHNICALS: The metal briefly fell below its 100-day moving average on Tuesday but has since held just above that level. "This has stopped the aggressive selling, so you have seen buyers come through," a trader said.
LME TIN: Three-month tin traded down 0.2 percent at $19,645 after data showing an increase in exports from Indonesia on Tuesday fueled fears of ample supply and pushed the metal down 2.4 percent on the highest volumes in more than a year. Tin has declined for four days and is at six-week lows.
OTHER METALS: Nickel did not trade but was bid up 0.6 percent at $8,910 a tonne. Zinc traded 0.5 percent lower at $2,450 while lead traded up 0.1 percent at $2,077.
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