Shanghai Futures Exchange copper slid 1.1 percent to 37,200 yuan ($5,725) a tonne on Wednesday as weak global manufacturing activity unsettled markets only recently soothed by signs of a possible pickup in China's economy. In other metals, aluminium gave up some of its gains from April. Shanghai aluminium fell 1.9 percent, after last month's more than 7-percent rise.
The recent spike in prices is prompting aluminium producers to restart their plants, Standard Chartered said in a note, adding that 1.7 million tonnes per year of capacity had already been restarted so far this year. "Given current ShFE prices support nearly 90 percent of China's smelters in profit, further restarts seem likely and should weigh on prices."
Global manufacturing growth almost stalled last month as rising prices halted an upturn in new orders, a survey showed. In China, factory activity shrank for a 14th consecutive month in April, according to a private survey, presenting a mixed picture of the health of the world's No 2 economy and top copper consumer.
"Disappointing manufacturing data in China raised some doubts in investors' minds after the strong rally in recent weeks," ANZ said in a note. "The recent disappointing data raises some doubt that conditions are conducive to further gains in prices. This should see investors liquidate positions in the coming days."
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