BEIJING- Most base metals begun September on a weaker note on Monday, as the market trimmed bets about an aggressive policy easing in the US and China’s manufacturing data increased demand concerns.
Three-month copper on the London Metal Exchange was down 0.4 percent at $9,199.50 per metric ton, after posting a slight gain in August, with rising prospect of a September rate cut.
The most-traded October copper contract on the Shanghai Futures Exchange slid 0.5 percent to 73,620 yuan ($10,364.05) a ton.
Trading and sentiment are largely dominated by US data, said Guangzhou Futures analysts.
Data showed on Friday upbeat spending figures in the world’s top economy, leading markets to trim the chance of a half-point easing from the Federal Reserve.
That boosted the dollar, which was hovering around a two-weektop on Monday.
A strong dollar makes it more expensive to buy the greenback-priced commodity and hence weighs down metals prices.
Crucial for the Fed will be the payrolls report later this week.
Also weighing on the market was demand from China. Copper stocks have declined in recent weeks after lowered prices encouraged buying, also with a traditional good autumn season.
An official manufacturing survey on Saturday showed China’s manufacturing activity sink to a six-month low in August as factory gate prices tumbled and owners struggled for orders.
Meanwhile, a private sector survey which mostly covers smaller, export-oriented firm, showed the country’s manufacturing activity swung back to growth in August as new orders drove production.
LME aluminum shed 0.8 percent to $2,427.50 a ton, nickel slid 0.8 percent to $16,625, zinc moved 1.5 percent lower to $2,853.50, tin lost 1.9 percent at $31,740, while lead increased 0.1 percent to $2,055.
SHFE aluminum slipped 0.9 percent to 19,560 yuan a ton, lead slipped 0.4 percent to 17,220 yuan, while nickel fell 2.5 percent to 128,290 yuan, zinc trimmed 1.3 percent lower to 23,720 yuan and tin lost 2.1 percent to 257,390 yuan.
