BEIJING: Copper prices climbed on Friday, while heading for a moderate monthly rise as profit taking and physical demand weakness in top consumer China capped gains.
Three-month copper on the London Metal Exchange rebounced 0.6% to $10,191 per metric ton by 0208 GMT, it has lost 1.2% this week as profit taking accelerated.
A speculation frenzy pushed up copper to record highs on May 20, followed by profit taking and also worries over US interest rate prospect.
So far, the contract registered a monthly gain of 2%.
Copper stumbles as funds liquidate amid rate worries
The most-traded July copper contract on the Shanghai Futures Exchange fell 1.6% to 82,490 yuan ($11,396.16) a ton.
Although copper is expected to benefit from a growing supply deficit of raw material and rising demand, the recent rally has hit actual consumption. Meanwhile, China’s manufacturing activity unexpectedly fell in May, an official factory survey showed on Friday.
The official purchasing managers’ index (PMI) fell to 49.5 in May from 50.4 in April, below the 50-mark separating growth from contraction and missing a median forecast of 50.4 in a Reuters poll.
LME aluminium gained 0.3% to $2,711.50 a ton, nickel added 0.9% to $20,240, zinc little moved at $3,070, tin moved 0.7% higher to $33,330, and lead rose 0.5% to $2,287.50.
SHFE aluminium fell 1.3% to 21,465 yuan a ton, tin was down 1.4% at 274,840 yuan, nickel lost 1.8% to 150,920 yuan, zinc shed 1.2% to 24,800 yuan and lead nudged 0.3% lower to 18,830 yuan.
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