Shanghai Futures Exchange copper slid by 1.5 percent to 38,310 yuan ($6,016.02) a tonne. Shfe zinc and tin also slipped by nearly 2 percent on Monday. The ShFE will close for a week for China's mid-autumn festival. The absence of the world's biggest metals user from Thursday, and a rash of third-quarter US earnings reports expected to show companies are struggling, may tips the price risks to the downside.
"The recoveries we've seen over the past couple of months, have been pretty short-lived," said strategist Daniel Hynes of ANZ in Sydney. "It highlights the increasing cautiousness around China's growth and what it means for copper despite what the supply side is doing. The PMI (Purchasing Managers' Index) will be pretty key this week."
Profits earned by Chinese industrial companies declined at the sharpest rate in four years in August as costs kept rising and product prices kept falling. Elsewhere, aluminium prices look set to test new lows, broker Triland said in a note. "Aluminum has closed the week on its lows, indicating more technical weakness to come...(It) remains stuck in a classic bear market with the whole range of commodity assets near or at multi-year lows."
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