Copper prices drift lower on softer China data

ScrapMonster -  Copper eased on Tuesday as downbeat factory data from top producer China highlighted the impact of Beijing’s trade conflict with the United States and reinforced concerns over demand for the metal.

Benchmark copper on the London Metal Exchange (LME) was bid down 0.8% to $5,765 a tonne after failing to trade in official rings. The metal, used in power and construction, touched a more than two-year low of $5,518 on Sept. 3.

“Copper is still drifting on the weak economic indicators in China and other parts of the world … still pointing to a contraction zone that’s not helpful to copper prices,” said ING analyst Wenyu Yao.

“Looks like the macro is winning at the moment.”

Factory-gate prices in China shrank at the sharpest pace in three years in August, falling deeper into deflationary territory and reinforcing the urgency for Beijing to step up economic stimulus as the trade war intensifies.

Customs data on Sunday showed China’s unwrought copper imports fell in August after a bounce the previous month.

Courtesy : business.financialpost.com