Copper edged lower on Thursday as investors worried about a slowdown in the pace of global economic growth, after a flurry of mixed economic data from China and the United States. Benchmark copper for three-months delivery on the London Metal Exchange closed at $6,680 a tonne from a close of $6,725 on Wednesday. It earlier slipped to $6,603.
Annual economic growth in top metals consumer China, eased to 10.3 percent in the second quarter from 11.9 percent in the first quarter, a touch weaker than expected. Nevertheless, the figures showed concerns about a steep slowdown were overblown. "Chinese data and a certain nervousness," said Nick Moore, global head of commodity strategy at RBS Global Banking & Markets. "It's more about a continuation of the cooling numbers ... the economic data is still not helpful in terms of people feeling that there is a strong trend emerging."
Also, the data showed inflation at the producer and consumer level eased in June from May, reducing the need for further policy tightening. Copper had fallen on Wednesday after minutes of the US Federal Reserve's June meeting said it should consider further easing if the economic outlook worsened considerably.
In the wider markets, European shares extended losses in afternoon trade, as downbeat economic data from the United States pointed to sluggish growth, offsetting optimism after strong results from US bank J.P. Morgan. Also from China, data showed production of refined copper rose 6 percent on the month in June to a record, as smelters boosted production to meet first-half output targets.
"The still very high production rates of metals, which have not yet declined significantly compared to the previous month, point towards declining imports during the course of the year. This might strain metal prices," said Commerzbank in a note. Among other industrial metals, aluminium ended at $2,018 a tonne from $2,005.
Primary aluminium production in China dropped 0.7 percent in June from May's record 1.416 million tonnes, following production cuts by some smelters due to low prices and tighter government controls over outdated facilities. Aluminium remains in oversupply, with latest data showing LME stocks total a hefty 4.38 million tonnes, although back from recent record levels at around 4.6 million tonnes.
Zinc ended at $1,810 a tonne from $1,850, tin closed unchanged at $17,950, while nickel was also unchanged at $19,400. Battery material lead was untraded at the close but last bid at $1,798 from $1,826 The global lead market was in surplus by 34,000 tonnes in the first five months of the year, while the global zinc market was in surplus by 209,000 tonnes, data from the Lisbon-based International Lead and Zinc Study Group's (ILZSG) latest monthly bulletin showed.