London copper prices fell on Tuesday as weak imports data from top consumer China reinforced concerns about demand prospects for the metal.
Three-month copper on the London Metal Exchange (LME) dipped 0.3% to $9,073.50 per metric ton by 0405 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange (SHFE) advanced 0.9% to 72,740 yuan ($10,220.17) a ton, reflecting overnight gains in London.
Total imports by China, which accounts for about half of global copper demand, rose only 0.5% in August, missing expectations for a 2% expansion and sharply slower than the 7.2% growth seen in the previous month.
Meanwhile, China’s unwrought copper imports slid to a 16-month low in August.
“China has deflationary pressure and weak growth. Import numbers are weak, so prices should slide,” said a trader, expecting LME copper to fall to as low as $8,450 a ton.
Copper bounces as market looks ahead to US inflation data
Copper is often used as a gauge to the health of the economy due to its application in a wide range of sectors.
However, a potential U.S. interest rate cut this month and hopes for more stimulus in China are limiting the price decline.
Signs of copper inventories in LME warehouses potentially falling, reflected in a rise in cancelled warrants, also lent support to the market.
LME nickel fell 0.3% to $15,860, zinc eased 0.1% to $2,729, while aluminium rose 0.7% to $2,368 a ton, tin edged up 0.3% to $30,900 and lead was flat at $1,953.
SHFE nickel fell 1% to 121,210 yuan and lead dropped 1.3% to 16,375 yuan, while aluminium rose 1.2% to 19,405 yuan a ton, zinc increased 0.5% to 22,860 yuan and tin edged up 0.5% at 252,060 yuan.
Comments
Comments are closed.