Shanghai Futures Exchange copper ended down 0.3 percent at 37,190 yuan ($5,519) a tonne on Wednesday with China's economic growth meeting expectations in the third quarter but an impending slowdown in real estate growth painting a mixed outlook for metals demand.
China's economy grew 6.7 percent in the third quarter from a year earlier, steady from the previous quarter, boosted by factors such as increased government spending. Real estate investment growth, a bellwether of metals demand, beat expectations, although cities' measures to restrict home sales mean the demand growth may cool in the months ahead.
China's new construction starts in September, measured by floor area, were down 19.4 percent from a year ago, Reuters calculations showed, a sharp deceleration from 3.3 percent in August. "Overall it's still consistent with our China economists' point of view that the economy is slowing but not going into a hard landing," said analyst Amy Li of National Australia Bank in Melbourne. "Base metals are used in infrastructure and real estate, so we will likely see demand slow for copper and aluminium as China transitions into a more consumer focused economy."
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