LONDON: Copper prices were down slightly in London on Thursday as a stronger dollar and poor economic data from China were offset by hopes the top metals consumer would do more to support its economy.
Benchmark copper on the London Metal Exchange (LME) was down 0.2% at $8,490 a metric ton by 1024 GMT.
Expectations of upcoming economic stimulus measures from China have been supporting commodities prices this week. Copper, used in construction and power, hit $8,528.5 a metric ton on Wednesday, its highest since May 10.
China’s economy stumbled in May with industrial output and retail sales growth missing forecasts, data showed on Thursday.
“Chinese recovery has lost steam as indicated by the latest disappointing data releases,” said ING analyst Ewa Manthey. “Before we see stronger, long-term recovery in prices, we need to see more evidence of economic recovery from the world’s biggest consumer of metals.”
Lower dollar and China stimulus hopes support copper
Making dollar-priced metals more expensive for buyers holding other currencies, the U.S. dollar strengthened on Thursday after the Federal Reserve left borrowing costs unchanged but signalled further rate hikes to come.
Some support for copper prices came from stocks in LME-registered warehouses, which registered a daily fall of 4,725 metric tons to a one-month low of 79,525 metric tons.
Large cancellation of warrants - documents that confer ownership - earlier this month, indicates large amounts of copper are due to leave the LME system soon.
Concern about copper supplies on the LME market are behind the shift to a premium for cash copper over the three-month contract, for the first time in two months, from a discount.
On the technical front, copper is hemmed in between the 50-day and 200-day moving averages, currently at $8,495 and $8,388, respectively.
LME aluminium fell 0.9% to $2,232.5 per metric ton, zinc shed 1.3% to $2,455, lead rose 0.2% to $2,121, tin added 1.6% to $27,200.
Nickel climbed 0.4% to $22,815, after hitting $23,045, its highest since May 10.