Copper prices hovered near a two-week low on Monday, pressured by a firmer US dollar and uncertainty over the economic recovery in top consumer China, while investors look ahead to US inflation data.
Three-month copper on the London Metal Exchange was flat at $8,037 per metric ton by 0451 GMT.
Most-traded December copper contract on the Shanghai Futures Exchange fell 0.4% to 66,950 yuan ($9,175.51) a ton, its lowest since Oct. 27.
“There’s persisting concerns of weakness in China and Europe and we’re starting to see tentative signs of growth pulse in the United States starting to slow.
These show we may be heading towards something of a downward move in terms of the economic cycle,“ said Kyle Rodda, financial market analyst at Capital.com.
More stimulus measures from China are still required to spark a meaningful turnaround to copper prices and broader base metals in the short and medium term, Rodda added.
The dollar index held firm near one-week high against its rivals.
A stronger greenback makes dollar-priced commodities more expensive for holders of other currencies.
Weak economic data last week from China raised concerns over the demand outlook.
China demand concerns, stronger dollar weigh on copper and other base metals
Traders now await inflation data from the United States that is expected to offer further clues on the Federal Reserve’s interest rate outlook after hawkish remarks from Chair Jerome Powell last week.
Higher interest rates usually tame economic growth, which in turn drives demand for metals.
LME aluminium was steady at $2,215.50 a ton, nickel rose 0.7% to $17,370, zinc eased 0.2% to $2,558, lead dipped 0.2% to $2,176 and tin gained 1.7% to $25,010.
SHFE aluminium declined 1.4% to 18,870 yuan a ton, nickel lost 1.9% to 138,760 yuan, zinc fell 0.8% to 21,470 yuan, lead was almost flat at 16,505 yuan, while tin rose 2.3% to 214,790 yuan.
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