LONDON: Copper prices edged up on Monday as declining stocks in warehouses registered by the London Metal Exchange (LME) and rain-hit mining operations in Chile offset a firm dollar and concerns about global economic growth.
Benchmark copper on the LME was up 0.1% at $8,397.50 a metric ton by 1550 GMT after the metal used in power and construction fell 2% last week.
All other base metals were down as macroeconomic data continued to disappoint. German business morale worsened for the second consecutive month in June after a slump in German manufacturing to a 37-month low while S&P cut its forecast for economic growth in China this year.
Official PMIs from China, due this week, should provide some insight into the demand outlook from the world’s biggest metals consumer.
“We are seeing a resumption of metal price weakness,” said SP Angel metals associate Arthur Parish, citing receding hopes of more substantial economic stimulus in China.
“This is being led by the steel sector, with coking coal and coke heading to yearly lows.” The premium for LME cash over the three-month copper contract jumped to a seven-month peak after a decline in stocks available to the market.
In other metals, LME aluminium fell 1.1% to $2,150 a metric ton while tin slid 3.1% to $25,650, zinc lost 1.3% to $2,333 while lead dropped 2.4% to $2,072.50 and nickel tumbled 4.8% to $20,285, the weakest since September last year.
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