Prices of most base metals fell on Thursday as uncertainty in the economic recovery in China, the world’s biggest metals consumers, weighed on sentiment.
Three-month copper on the London Metal Exchange fell 0.5 percent to $8,098 per metric ton, while the most-traded December copper contract on the Shanghai Futures Exchange declined 0.5 percent to 67,030 yuan ($9,203.12) a ton.
China’s consumer prices swung back into contraction and factory-gate deflation persisted in October as domestic demand struggled, weighing on the outlook for any broad-based recovery in the world’s second-largest economy.
Earlier data showed a mixed picture of Chinese economic performance. Manufacturing activities and exports slowed in October, but imports unexpectedly grew, with copper imports hitting a 10-month high.
“A continued rebound in copper prices may require substantial improvement in the economy,” said Jinrui Futures in a note.
Sentiment was also cautious as traders and investors eyed developments in troubled Chinese property giant Country Garden The real estate sector is one of the biggest consumers of metals.