LONDON: Copper prices fell in London on Tuesday after a strong July, as weak data out of top consumer China and the euro zone indicated poor demand.
Three-month copper on the London Metal Exchange (LME) was down 2.2% at $8,640 per metric ton by 1616 GMT. Copper, used in power and construction, rose by 6.2% in July on hopes that China would bring more measures to boost its economy.
That was its biggest monthly rise since January, when hopes of a surge in demand were high following China’s removal of its COVID curbs. Other base metals rose in July as well. “Everything is up strongly from a month ago, so there is a pull-back today to consolidate those gains,” said Dan Smith, head of research at Amalgamated Metal Trading.
“The recent PMI data from Asia showed weakness in China, Japan and South Korea. Construction data out of China is still very poor. It is a reason to be cautious in terms of base metals.” A firmer dollar index also pressured the market, making commodities priced in the US currency more expensive for buyers using other currencies.
The dollar rose after relatively solid data on US manufacturing and construction offset a decline in job openings to the lowest level in more than two years.
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