Benchmark London copper fell during Asian trading on Monday, resuming its downtrend after a late-session rebound on Friday, as the US dollar firmed and investors braced for industrial activity data from top metals consumer China.
Three-month copper on the London Metal Exchange was down 0.6% at $8,205 a tonne, as of 0312 GMT. It slumped to its lowest in more than five months on Friday at $8,136.50, weighed down by concerns over the pace of China’s economic recovery, rising inventories and the dollar’s strength.
The dollar hit a five-week high against major peers as it benefited from inflation worries at home and slowdown concerns globally.
A stronger dollar makes greenback-priced metals more expensive for holders of other currencies.
Investors also remained on edge as China is due to report monthly industrial production, retail sales and fixed asset investment data on Tuesday, analysts said.
“China’s April activity readings will be an important gauge of the extent to which the post-zero-COVID recovery has faltered, as suggested by recent PMI, imports and credit data,” said Ray Attrill of National Australia Bank.
Copper prices have fallen about 14% since hitting a high of $9,550.50 a tonne in January, when the metal was propped up by optimism around Chinese demand after Beijing lifted COVID curbs.
Demand blues push copper prices lower
China’s central bank rolled over maturing medium-term policy loans while keeping the interest rate unchanged on Monday, as expected, but markets expect monetary easing may be inevitable in the coming months to support the economic recovery.
The most-traded June copper contract on the Shanghai Futures Exchange added 0.1% at 64,430 yuan ($9,321.34) a tonne.
LME aluminium shed 0.3% to $2,224 a tonne, nickel dropped 0.7% to $22,070, zinc dipped 0.5% to $2,537, tin fell 1.1% to $24,570, while lead gained 0.1% to $2,077.50.
SHFE aluminium rose 0.5% to 17,985 yuan a tonne, zinc dipped 0.1% to 20,800 yuan, lead eased 0.4% to 15,190 yuan, tin dropped 1.8% to 197,700 yuan, while nickel gained 0.8% to 169,680 yuan.