LME copper, aluminium slip in thin China holiday trade

London copper eased on Monday, while aluminium extended losses for a third straight session as thin trade, with China out for a holiday, weighed on prices.

The Shanghai Futures Exchange is closed for the Lunar New Year holiday that began on February 15 and trading will resume on February 24.

The benchmark three-month copper on the London Metal Exchange, fell 0.5% to $12,810.0 a ton as of 0449 GMT, having dropped to a one-week low on Friday.

LME copper may retest a support at $12,578 a metric ton this week, a break below which could trigger a drop into $11,545-$12,116 range, Reuters technical analyst Wang Tao said on Monday.

Copper stocks on the world’s three biggest metal exchanges have exceeded 1 million metric tons for the first time in more than two decades, as an inventory build due to soft demand in China adds to recent stockpiling in the United States.

LME copper stocks were up 7,225 metric tonnes by Friday.

China’s factory activity faltered in January as weak domestic demand dragged down production at the start of the new year, an official survey showed on January 31.

In other metals, aluminium nudged 0.4% lower to $3,065.0, having dropped to a one-week low on Friday after a report that US President Donald Trump plans to scale back some tariffs on steel and aluminum goods.

LME aluminium may retest a support at $3,000 a metric ton this week, a break below could open the way toward $2,916, Tao added.

LME nickel lost 0.5% to $16,905/ton, its lowest in more than a week.

Nickel stocks on the exchange were also up 702 tons.

Zinc fell 0.5% and lead dipped 0.10%.