Shanghai Futures Exchange copper fell 0.5 percent to 35,450 yuan ($5,390) a tonne on Monday after China's manufacturing growth shrank at the fastest pace in more than three years in January, underlining slowing appetite from the world's top metals consumer. Among other metals, ShFE lead held Friday's gains, rising more than 2 percent, while zinc ended more than 1 percent higher.
Activity in China's manufacturing sector contracted at its fastest pace in almost three-and-a-half years, missing market expectations, an official survey showed. China stocks fell by more than 1 percent. The gauge underscored worries that China's commodity demand growth is waning, which has undermined prices sector-wide. However, China's copper imports have stayed strong and dips have found support, suggesting prices have marked a floor, Jonathan Barratt, chief investment officer at Ayer's Alliance in Sydney, said.
"We have been down here for such a long time, but each dip is being supported. You look at the consumption numbers coming out of China - they're still solid. China is still stimulating its economy and that will transfer into commodities demand," he said.
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