Copper prices in London firmed on Friday, but were on track for their biggest monthly decline since May 2023 amid patchy economic growth in top consumer China and higher inventories.

Three-month copper on the London Metal Exchange was up 0.5% at $9,558.50 per metric ton, as of 0216 GMT. The contract was down 4.8% in June, and set for a sixth straight weekly loss, if current trend holds.

After advancing to a record high of $11,104.50 on May 20, copper prices have fallen 14%, partly on sluggish economic data from China and uncertainty over US interest rates.

“Markets have shifted their view to the reality of the fundamentals, and the reality is that demand is weak, especially in China.Meanwhile, if we look to ex-China, the health of manufacturing remains clouded, US is performing better, but Europe remains in manufacturing recession,” said StoneX analyst Natalie Scott-Gray.

“I think we will see copper average around $9,500 per ton for the year, but prices will likely go above $10,500 by year-end, when I suspect we have the first US rate cut.”

Copper inventories in warehouses monitored by the Shanghai Futures Exchange were at 322,910 tons last week, compared with about 30,000 tons in January, reflecting the abundant supply in China.

The most-traded August copper contract on the Shanghai Futures Exchange rose 0.2% at 78,060 yuan ($10,741.56), but was set to post its worst month since July 2022.

Copper slips to more than two-month low on high stocks and weak demand

In the broader market, the dollar was headed for a monthly gain, making greenback-priced metals more expensive to holders of other currencies.

LME aluminium gained 0.5% to $2,504.50 a ton, nickel edged up 0.7% to $17,220.00, zinc rose 0.6% at $2,947.50, lead added 0.5% to $2,189.50, and tin rose 0.6% at $32,440.

SHFE aluminium steadied at 20,250 yuan a ton, nickel was flat at 134,920 yuan, lead was up 0.6% at 19,370 yuan, while zinc rose 0.6% to 24,370 yuan and tin was up 1.1% at 269,560 yuan.