LONDON: Copper slipped on Monday after new bank lending in China fell more than expected in October, highlighting weak demand for credit in the world’s largest metals consumer.

The most-traded three-month copper on the London Metal Exchange (LME) eased 0.4% to $9,401 per metric ton by 1136 GMT.

Chinese banks extended 500 billion yuan ($69.51 billion) in new yuan loans last month, greatly lagging the forecast for 700 billion yuan.

Total social financing (TSF), closely watched by metals analysts as a key gauge of metals demand, also slowed to a record low of 7.8%.

Sluggish corporate borrowing in China has sent a bearish signal on metals consumption, Dan Smith, head of research with Amalgamated Metal Trading said.

“Market was choppy after the U.S. election last week and is now consolidating on fundamentals. U.S. policy may drive the investment sentiment, but the Chinese one drives demand.” Smith said.

Copper pulls back on disappointment over China’s fiscal support

While China has been tackling hidden debt and boosting stimulus measures, this has not fed through into more bullish sentiment, he added.

Another indicator of the Chinese economy’s strength will be house price data due this Friday.

Among other metals, aluminium prices dropped 0.9% to 2,597 per metric ton. Prices of the light metal soared to five-month highs last week on supply disruption of bauxite and alumina, the raw materials to make primary aluminium.

The most traded alumina contract on the Shanghai Futures Exchange(ShFE) for January expiry set fresh record highs on Monday.

Zinc rose 1% to $3,009, nickel decreased 1% to $16,225, lead added 0.4% to $2,032, and tin rose 0.5% to $31,800.