LONDON: Copper prices in London were on track on Friday for a 8.4% decline in the second quarter after two quarters of growth due to slow demand recovery in top metals consumer China and concerns over global economic growth.
Three-month copper on the London Metal Exchange rose 0.8% to $8,238.5 per metric ton by 1027 GMT. The metal, used in power and construction, failed to hold on to the boost it got in early 2023 when China removed its COVID-curbs and is down 1.6% so far this year.
“China’s economic recovery after Covid-19 has disappointed with hopes for a demand boost now fading,” said ING analyst Ewa Manthey. “We remain cautious heading into the second half of the year with sluggish demand from China pointing to lower prices.”
China factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed on Friday, adding pressure for authorities to do more to shore up growth.
“There is no end in sight in the near future to the gloomy sentiment surrounding China’s economic recovery,” Commerzbank said in a note.
Copper slips on economic worries despite upbeat China comments
The most-traded August copper contract on the Shanghai Futures Exchange fell 2.4% on a quarterly basis. Copper inventories in warehouses monitored by the exchange rose 13% to 68,313 metric tons, according to its weekly data.
Copper stocks in the LME-registered warehouses fell by 2,450 tonnes to 72,975 after outflows from New Orleans and Rotterdam, LME daily data showed.
On the supply front, production partially resumed after mid-June fire at Sweden’s Ronnskar smelter, its owner said on Friday.
Among other LME metals, aluminium dipped 0.9% to $2,140.5 per metric ton and was also on track for the first quarterly drop since July-September.
Nickel fell by 2.0% to $20,230. The metal is the worst LME performer so far this year, down 33%.
Zinc rose by 0.8% to $2,359, tin added 1.9% to $26,600 and lead gained 0.1% to $2,053.5.
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