LONDON: Prices for copper and other base metals fell in London on Tuesday, as the outlook for demand from top consumer China worsened after data showed slowing industrial output growth and falling property investment.
Benchmark copper on the London Metal Exchange (LME) was down 1.2% at $8,191.5 a metric ton at 1618 GMT after touching its lowest since June 29 at $8,163.90, on course for a fourth consecutive daily decline.
Though slowing industrial production and declining property investment in China are applying price pressure, more supportive policies could prevent excessive declines, said Amelia Xiao Fu, head of commodity market strategy at Bank of China International.
Beijing cut key policy rates to shore up activity on Tuesday but analysts said more support was needed to revitalise growth.
The discount for nearby delivery compared with the three-month LME copper contract reached $55, its highest since late May.
Some support for metals came from a weaker US currency, which makes dollar-priced metals more attractive for buyers holding other currencies.
US retail sales increased more than expected in July, suggesting the economy continued to expand early in the third quarter, helping to keep recession at bay.
LME aluminium was flat at $2,145 a metric ton after touching its lowest since July 7 at $2,136.50. The discount for near-term delivery compared with the three-month LME aluminium contract climbed to its highest since the global financial crisis of 2008, indicating weak demand.
Other growth-dependent metals were also down sharply, with LME nickel hitting its lowest since July 2022, at $19,760 per metric ton and zinc touching its weakest since June 6 at $2,305.
LME’s daily data showed large arrivals of zinc to LME-registered warehouses in Singapore.
Nickel fell 1.6% to $19,765 and zinc lost 1.8% to $2,307 while lead rose 1.4% to $2,126 and tin retreated by 0.9% to $25,100.
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