Copper futures inched higher on Thursday, although a firmer dollar and uncertainty over economic recovery in top consumer China kept prices of the red metal near a two-month low.

Three-month copper on the London Metal Exchange was up 0.2% at $9,558.50 per metric ton, as of 0429 GMT. Still, the contract hovered near its lowest since April 18 hit in the previous session.

After reaching a record high of $11,104.5 on May 20, prices have fallen by nearly 14% amid sluggish data from China and uncertainty surrounding US interest rates.

China’s industrial profit growth slowed sharply in May, according to data, as weak domestic demand crimps overall growth.

“We should see a second wave of price increases as we head into the end of the month, more allocation away from expensive US equities and into relative value commodities.

Also, there is more Chinese stimulus to be announced,“ said a metals trader. The most-traded August copper contract on the Shanghai Futures Exchange was flat at 77,980 yuan ($10,729.08) a ton.

“Inventory levels of copper continue to surge in China, while local premiums remain low, signalling little sign of physical demand to back to euphoric positioning in the West,” analysts at TD Securities said in a note dated Wednesday.

Copper falls under pressure from China demand concerns

Chile’s Codelco, one of the world’s largest copper producers, fell further behind its production target in May, an internal document obtained by Reuters showed.

In the broader market, the dollar stood near an eight-week high against a basket of currencies.

A stronger dollar makes greenback-priced commodities less attractive to holders of other currencies.

LME aluminium was trading 0.1% lower at $2,507.50 a ton, nickel rose 0.3% to $17,100, zinc gained 0.6% to $2,958.00, lead was up 0.2% at $2,199, and tin rose 0.4% to $32,065.

SHFE aluminium rose 0.2% to 20,260 yuan a ton, nickel gained 0.6% to 134,850 yuan, lead was up 1% at 19,320 yuan, while zinc climbed 2.3% to 24,305 yuan and tin firmed 0.6% at 268,100 yuan.