Copper falls as China data dents demand outlook
- China is the world's biggest copper consumer, and consumption of the metal is often used as a gauge of global economic health
Copper prices declined on Monday on demand worries as data from top metals consumer China showed signs of a slowdown in the world's second-biggest economy.
Three-month copper on the London Metal Exchange fell 1.6% to $9,420 a tonne by 0714 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange closed down 0.3% at 69,660 yuan ($10,751.99) a tonne.
Both, factory output and retail sales in China rose more slowly than expected in July from a year ago, as export growth cooled and new COVID-19 outbreaks disrupted business.
China is the world's biggest copper consumer, and consumption of the metal is often used as a gauge of global economic health.
"The world seems to be slowly digesting the news that the post COVID-19 bounce back is not going to be a simple V-shaped recovery, but a long and hard road," Malcolm Freeman, a director at UK broker Kingdom Futures, said in a note.
FUNDAMENTALS
China's aluminium output in July slipped for a third month, with daily average levels at the lowest since October 2020, as continued power shortages kept smelter operating rates low.
LME aluminium dipped 0.2% to $2,595 a tonne, while ShFE aluminium rose 0.6% to 20,150 yuan a tonne.
The difference between LME cash aluminium over the three-month contract flipped to a premium of $8.25 a tonne, having stayed in discount since the beginning of August, indicating tightening nearby supply.
LME cash lead was last at a $93.40 premium over the three-month contract, suggesting tight supplies for near-term contract.
LME lead dropped 0.7% to $2,317 a tonne and zinc fell 1% to $3,003.50 a tonne. ShFE lead eased 0.1% to 15,420 yuan a tonne and tin dipped 0.1% to 237,670 yuan a tonne.
Chile's Codelco said on Friday its Andina mine was operating at reduced levels due to a labour strike.
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