LONDON: Copper prices edged lower on Wednesday after disappointing economic data in top metals consumer China, but supply concerns due to mine disruptions and the Middle East conflict helped limit losses.
Benchmark three-month copper on the London Metal Exchange lost 0.7 percent to USD13,543 a metric ton by 1630 GMT, after hitting a three-week peak in the previous session. GDP growth in the world’s second-largest economy China cooled to a 3.5-year low, missing forecasts on weak domestic demand, official data showed.
“The economic data from China was a bit of disappointment, so that could be what’s being reflected in the softness today,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
But the downside was limited partly due to persistent supply issues, Hansen added.
The most-traded copper contract on the Shanghai Futures Exchange pared back earlier gains, ticking 0.1 percent higher to 104,220 yuan (USD15,392.11) a ton. Rio Tinto posted a 7 percent fall in copper output in the June quarter and said a furnace outage at its US Kennecott mine is expected to affect production in the second half, while first-half copper output at Antofagasta fell 9.5 percent.
“We continue to be reminded about the potential risks that come on the supply side and the high energy prices will just continue to increase the focus on electrification,” Hansen added. Oil prices extended gains on Wednesday after the US launched a fresh round of strikes against Iran, while Tehran threatened to close other export corridors.
“The long-term The bullish story for copper most certainly has not been negatively impacted by the events of the last few months,” Hansen said. LME lead lost 0.9 percent to USD1,850 a ton, its weakest since April 2025 after further inflows of metal to LME warehouses in Singapore.
Over two days, LME stocks have surged by 58 percent to 456,575 tons, the highest since at least 1970, LSEG data shows. Among other metals, LME aluminium fell 0.9 percent to USD3,150 a ton, zinc dropped 1.4 percent to USD3,548, tin slumped 2.4 percent to USD52,500, while nickel added 0.4 percent to USD16,830.
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