LONDON: Copper eased on Monday, pressured by subdued demand in top consumer China and a significant upturn in deliveries to warehouses approved by the London Metal Exchange (LME) while some support was provided by a softer dollar.

Benchmark copper on the LME traded 0.1% lower at $9,675 a metric ton in official rings. It has dropped 13% since hitting its May 20 record high above $11,100 on signs of demand weakness in China and elsewhere. “Funds are trading base (metals) against the yo-yoing dollar,” one metals trader said, adding that a meaningful upturn in copper prices would need signs of much stronger China consumption.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell last week, but still stand at 322,910 tons compared with about 30,000 tons in January.

Stocks of copper in LME-approved warehouses, meanwhile, have jumped more than 60% to 167,825 tons since mid-May, with most of the deliveries to Asian warehouses coming from China. Lack of concern about supplies on the LME market are behind the record discount for cash copper against the three-month contract, currently around $135 a ton.

Also worrying for industrial metals is growing protectionism, such as the European Union’s plans to impose tariffs on electric vehicles made in China.

“Given the importance of exports to China’s economy, there are growing concerns around trade barriers and the threat they present to those exports in the future,” Marex said in a note. Elsewhere, nickel fell to $17,100 a ton for its lowest since early April on LME stocks that have more than doubled to 90,906 tons since November.

However, Macquarie’s Jim Lennon now expects a smaller surplus of 117,000 tons this year for reasons including stronger demand from stainless steel mills. Nickel was up 0.2% at $17,260 a ton. In other metals, aluminium slipped 0.3% to $2,505 a ton, zinc gained 0.5% to $2,857, lead was down 0.1% at $2,188 and tin advanced 0.5% to $32,845.