LONDON: Copper prices slipped on Monday as worries about demand in top consumer China resurfaced and inventories in exchange warehouses climbed, but expectations that the global interest rate tightening cycle is close to ending helped support.
Benchmark copper on the London Metal Exchange (LME) was down 0.5% at $8,362 a metric ton at 1613 GMT. It has mostly traded in a narrow range over the past month.
Five central banks, including the US Federal Reserve, which is expected to leave interest rates on hold at the end of a two-day policy meeting on Wednesday, and the Bank of England are due to meet this week.
Fears that China’s economy had yet to bottom were stoked by data showing the slump in its property sector worsened in August, with deepening declines in new home prices, property investment and sales.
“There isn’t much good news coming out of China, doesn’t bode well for copper,” a metals trader said, adding that the market was also concerned about the global macro picture. “Copper inventories are starting to pile up.”
Copper stocks in LME-approved warehouses, at 147,575 tons, have climbed more than 170% since the middle of July.
In other metals, aluminium rose 1.3% to $2,218, zinc gained 0.8% to $2,542, tin added 1.9% to $26,185 and nickel slipped 0.2% to $19,890.
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