SINGAPORE — London metals edged lower on Tuesday amid weaker copper demand in top consumer China, although a softer dollar cushioned the fall.
Three-month copper on the London Metal Exchange nudged 0.31 percent lower to $9,580.5 per metric ton.
Downstream purchases are relatively cautious, end-user demand is gradually slowing, and fundamentals may weaken as copper demand approaches its offseason, said Chinese consultancy Everbright Futures.
Photovoltaic cells, wires, and cable orders have weakened, and the overall copper consumption growth rate has declined, but demand may remain resilient given the 90-day tariff suspension, said broker Galaxy Futures.
The US and China agreed to reduce tit-for-tat tariffs and implement a 90-day pause on actions earlier in the month, but there is still uncertainty on what will follow after the temporary truce.
Meanwhile, the dollar index slid 0.1 percent, down for a third-straight session, making dollar-denominated assets more affordable to holders of other currencies.
Broadly, China’s industrial profits picked up pace in April, official data showed on Tuesday.
On the supply side, Ivanhoe Mines said on Monday it had suspended its output forecast for this year after seismic activities at its giant copper mine in the Democratic Republic of Congo halted underground mining operations.
The Democratic Republic of Congo is the biggest copper producer in Africa.
