Copper fell on Wednesday, on signs of slowing factory activity in China and Europe, and extended losses after below-consensus jobs and manufacturing data from the United States reinforced worries about demand.
Benchmark copper on the London Metal Exchange finished at $9,102 from a close of $9,220 a tonne on Tuesday, when the metal used in power and construction hit $9,278.50 a tonne, its highest in four weeks. "Lower European, Chinese and US data doesn't help sentiment," said VTB Capital analyst Andrey Kryuchenkov.
"There is some more downside because the data has been persistently softer and there is no support from other factors such as premiums or Chinese buying," Kryuchenkov said, forecasting that in the medium term copper would trade between $9,000 and $9,300 a tonne.
Chinese factories expanded in May at their lowest pace in at least nine months, two surveys showed on Wednesday, reinforcing evidence that the economy is slowing under the weight of government credit curbs and power shortages.
China is the world's top consumer of base metals.
"The fact that we're a little bit weaker is a reflection of the weaker (manufacturing figures) which have ignited people's concerns about a slowdown in activity in China," said analyst Gayle Berry of Barclays Capital.
"We're moving from what was a period of very fast expansion in 2010 as economies went into recovery, into a more mature phase where you'd expect to see rates of expansion slow. You need... perspective when looking at these numbers," added Berry.
Fresh signs of decline among factories in the eurozone's debt-laden periphery tugged sharply on manufacturing growth in the region in May and weighed on investor confidence.
US data depressed market sentiment further.
Data showed US private employers added only 38,000 jobs in May, below expectations and the lowest level since September 2010.
The figures do not bode well for Friday's non-farm payrolls data for the United States, analysts said.
The pace of growth in the US manufacturing sector also tumbled in May, slackening more than expected to its slowest since September 2009.
Traders expected muted metals futures trading in Europe this week with many nations off on holiday on Thursday.
News of the magnitude 6.3 earthquake in major producer Chile had little immediate impact on copper prices.
Stocks of copper in LME warehouses rose 3,075 tonnes to above 470,000 tonnes for the first time in a year, highlighting lack of demand in what is usually a peak season.
News that China will raise power prices for some consumers has helped support aluminium prices this week.
Energy accounts for about 35 percent on average of aluminium smelting costs and China is the world's largest producer of the metal used widely in the power, construction and packaging industries.
Three-month aluminium, untraded in rings, was bid at $2,667 from $2,677 on Tuesday. Earlier on Wednesday it saw $2,684.75 a tonne, its highest since May 5.
Tin closed at $27,595 from $27,940 while zinc, used in galvanising steel, ended at $2,257 from $2,266 on Tuesday's close.
Battery material lead finished at $2,500 from $2,521 and nickel closed at $23,250 from $23,590.