LONDON: Prices for copper fell in London on Wednesday under pressure from global services activity data that darkened the demand outlook for growth-dependent metals.
Benchmark copper on the London Metal Exchange (LME) traded 0.3% down at $8,331 a metric ton by 1605 GMT.
Prices for the metal used in power and construction are flat so far this year owing to a slower than expected post-pandemic recovery for top consumer China.
China’s services activity expanded at the slowest pace in five months in June, a private-sector survey showed on Wednesday, and euro zone business activity began to contract.
“The June set of global PMI (purchasing managers index) prints remained terribly poor on a historical basis, suggesting metals consumption will remain under pressure in the coming months,” Citi analysts said in a research note.
Some investors still hope that possible Chinese economic stimulus will spur faltering economic growth, but Citi believes such optimism is excessive.
Citi expects copper to average $8,000 a metric ton over the next three quarters and to trade in a range of $7,500 to $8,500.
Base metals have been unaffected so far by the latest twist in long-running trade spat between the United States and China, with the latter this week introducing export restrictions for gallium and germanium, which are used in semiconductors.
In other metals, LME aluminium lost 1.2% to $2,141.5 a metric ton, zinc shed 2.0% to $2,362, lead eased 1.3% to $2,066, tin was up 1.0% at $27,605 and nickel rose 3.5% to $21,230.
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