BEIJING: London copper price edged up on Friday, while heading for its biggest weekly drop since November, as sluggish economic recovery in top consumer China exacerbated worries over the demand outlook against rising supplies.
Three-month copper on the London Metal Exchange was up 0.1% to $8,174.50 a tonne by 0145 GMT, having touched a five-month low in the previous session.
The contract has lost 4.8% so far this week, its biggest weekly drop since last November.
The most-traded June copper contract on the Shanghai Futures Exchange fell 3.1% to 64,270 yuan ($9,298.19) a tonne, the lowest level since Jan.5.
Consumption for industrial metals in China has remained subdued in the second quarter which is traditionally a peak demand season due to a slow economic recovery and sluggish export market.
China’s inflation data on Thursday added to concerns over the strength of the country’s economic recovery.
That came against the rise in supplies in the market.
Production at 22 smelters surveyed by Antaike, with a total capacity of 11.12 million tonnes, totalled 886,700 tonnes last month, up 18.5% from a year ago. Copper inventories in LME warehouses climbed to a near two-month high on Thursday.
Weak Chinese demand outlook punishes copper
Weighing down prices further was a firm dollar, typically making it less attractive for non-dollar holders to buy the greenback-priced commodity.
LME aluminium gained 0.1% to $2,214 a tonne, lead added 0.3% to $2,114.50, and nickel climbed 0.4% to $21,860, while tin shed 1% to $25,045 and zinc dipped 0.1% to $2,545.
SHFE aluminium fell 1.7% to 17,850 yuan a tonne, zinc lost 1.8% to 20,765 yuan, lead eased 0.3% to 15,245 yuan, nickel fell 2.3% to 168,230 yuan, and tin dropped 2.6% to 201,110 yuan.
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