LONDON: Copper prices in London fell on Thursday under pressure from a weak global economic growth outlook and tepid demand in top consumer China.

Benchmark copper on the London Metal Exchange (LME) traded 0.7% down at $8,262.5 a metric ton by 1029 GMT.

The metal used in power and construction had started 2023 buoyed by hopes of a strong post-COVID rebound by China but its recovery has since proved less commodities-intensive than expected.

“While market participants expect China to deliver some (economic) stimulus, we think that China is unlikely to take action on the massive scale seen in 2008, mainly because of debt concerns,” said Amelia Xiao Fu, head of commodity market strategy at Bank of China International.

BofA Global Research cut its 2023 price forecast for copper by 6.8% to $8,788, along with downward revisions for other base metals, citing slow normalisation of activity in China, tighter monetary policy and a global manufacturing recession.

However, copper is expected to be better supported than other base metals in the second half of the year thanks to its role in the green energy transition.

Copper and other base metals fall on weak demand outlook

“We prefer copper among the base metals, partially because the green revolution has offset the demand drag from housing and increased policy support in China should push the metal higher,” BofA Global Research said in a note.

Last month’s premium for the LME’s cash contract against three-month copper proved short-lived and swung to a discount in July, indicating plentiful near-term supply.

In other metals, LME aluminium eased 0.5% to $2,132.5 a metric ton, nickel fell 0.8% to $21,030, zinc was down 0.2% at $2,353 and lead lost 0.5% to $2,056.5.

Tin, meanwhile, jumped 2.4% to $28,285, having touched a five-month high of $29,110.