BEIJING: Copper prices slid on Monday after data showed that top consumer China’s industrial output was weaker than expected in May, while a firmer U.S. dollar also weighed on the metal.
Three-month copper on the London Metal Exchange was down 0.4% at $9,701.50 per metric ton by 0447 GMT, having been flat last week.
The most-traded July copper contract on the Shanghai Futures Exchange (SHFE) slid 1.3% to 78,630 yuan ($10,837.15) a ton.
China’s May industrial output growth slowed to 5.6%, missing a forecast of 6%, amid a property market slump, high local government debt and deflation.
However, retail sales accelerated last month.
Prices of copper, often seen as an economic bellwether, jumped in May to record highs on speculative buying amid raw material shortages, followed by downward corrections as China’s demand proved weaker than expected.
Copper dips below $10,000 as consolidation continues
Some market participants are now bearish on copper, a trader said, expecting SHFE prices to fall below 70,000 yuan.
The dollar was firm on Monday as the euro hovered near a more than one-month low amid continued concerns about the political outlook in Europe.
A strong dollar makes the greenback-priced commodity more expensive to buy.
Data on Monday also showed higher aluminium output in China, which combined with a recent surge of Russian imports and weak demand from the construction sector, could raise inventories, according to analysts.
LME nickel was steady at $17,575 a ton, aluminium dipped 0.3% to $2,510, tin added 0.4% to $32,440, zinc advanced 0.5% to $2,780 and lead rose 1.2% to $2,165.
SHFE nickel declined 0.8% to 136,230 yuan a ton, aluminium fell 1.4% to 20,385 yuan, zinc lost 1.6% to 23,290 yuan, and tin dropped 1.3% to 267,810 yuan, while lead gained 0.9% to 18,730 yuan.
Comments
Comments are closed for this article.