LONDON: Copper prices fell in London on Monday after top consumer China said its economy faced new challenges and tortuous economic recovery.
Three-month copper on the London Metal Exchange fell 0.6% to $8,404 per metric ton by 1020 GMT. Copper, used in power and construction, declined 2.6% last week — its biggest weekly fall since mid-May — on China’s modest stimulus measures.
“Global growth concerns, and in particular slowing demand in China as its economic recovery lost momentum in the second quarter, are weighing on industrial metals prices,” said ING analyst Ewa Manthey.
China, which has set a modest target for economic growth this year of around 5%, would adjust and optimise property policies at an appropriate time, the Politburo, a top decision-making body of the ruling Communist Party, was quoted as saying by the state media on Monday.
Copper premium in Yangshan dropped to a two-month low of $46 a metric ton on Friday, indicating weaker import appetite.
Copper eases on disappointment on Chinese stimulus
On the technical front, copper is squeezed between the 200-day and 50-day moving averages, with the 21-day moving average coming in between them at $8,405.
A firmer U.S. currency index also pressured the base metals market, making dollar-priced commodities more expensive for buyers holding other currencies.
Metals markets are focused on a rate decision from the U.S. Federal Reserve due later this week that might offer more clues on the tightening path ahead.
LME aluminium declined 0.8% to $2,188 a metric ton, while lead added 0.1% to $2,142.5, tin lost 0.7% to $28,305, while nickel rose 0.3% to $20,835.
Zinc was steady at $2,373 after LME daily data showed inventory cancellations of 21,425 metric tons in the exchange-registered warehouses, slashing on-warrant stocks by 27% to 59,950 metric tons.
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