Prices of industrial metals fell on Monday after top consumer China reported several key economic data, which missed expectations by large margins, reinforcing fears of weakening demand from the world’s biggest metals market.
Three-month copper on the London Metal Exchange was down 0.7 percent at $8,033 a ton while the most-traded September copper contract on the Shanghai Futures Exchange dropped 1.3 percent to 61,890 yuan ($9,160.34) a ton.
China’s economy unexpectedly slowed in July, with industrial output, fix-asset investment, and retail sales all missing forecasts by large margins. China’s new yuan loans also tumbled more than expected in July.
“Copper … recovered from a heavy sell-off earlier. But I am not sure how long the upward moment will last. I expect more downside risk. Fundamentals continue to be poor,” said a metals trader.
However, China’s Yangshan copper premium rose to $97.50 a ton, its highest since December 2021, with the trader attributing that to an open import arbitrage, the act of buying ShFE and selling LME contracts simultaneously. – Reuters