Copper prices declined on Thursday as weak data from top metals consumer China weighed on the demand outlook, while a stronger dollar made greenback-priced metals more expensive for holders of other currencies.
Three-month copper on the London Metal Exchange eased 0.3% to $8,233 per metric ton by 0647 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange dipped 0.8% to 67,230 yuan ($9,278.22) per metric ton.
The dollar climbed after U.S. Federal Reserve Chairman Jerome Powell did not rule out more rate hikes at the next meeting and reiterated that most central bankers will see two rate rises this year.
Copper sinks on weak China industrial profits
In China, factory activity is expected to contract for a third straight month in June, underscoring the need for further policy stimulus to counter weak demand.
This follows data on Wednesday showing annual profit at China’s industrial firms declining in double-digit percentage rate in the first five months of this year due to softening demand.
Base metals are widely used across different economic sectors and in the manufacturing industry.
“The domestic (copper) supply is expected to pick up month-on-month after July… It is expected that there will still be downward pressure in the future,” Jinrui Futures said in a note, adding that the medium and long-term macroeconomic outlook remained gloomy.
LME aluminium fell 0.4% to $2,166 per metric ton, while nickel rose 0.2% to $20,100, zinc advanced 0.7% to $2,365, lead was almost unchanged at $2,071 and tin climbed 0.3% to $26,125.
SHFE aluminium declined 0.6% to 17,970 yuan per metric ton, nickel shed 2.1% to 155,370 yuan, zinc eased 0.5% to 19,925 yuan, tin fell 0.4% to 213,170 yuan and lead was almost flat at 15,460 yuan.
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