LONDON- Copper prices in London posted a 7.7 percent decline in the second quarter after two quarters of growth due to slow demand recovery in top metals consumer China and concerns over global economic growth.
Three-month copper on the London Metal Exchange rose 1.6 percent to $8,306 per metric ton. The metal, used in power and construction, failed to hold on to the boost it got in early 2023 when China removed its COVID-curbs and is down 0.8 percent so far this year.
“China’s economic recovery after Covid-19 has disappointed with hopes for a demand boost now fading,” said ING analyst Ewa Manthey. “We remain cautious heading into the second half of the year with sluggish demand from China pointing to lower prices.”
China factory activity declined for a third straight month in June and weakness in other sectors deepened, official surveys showed on Friday, adding pressure for authorities to do more to shore up growth.
“There is no end in sight in the near future to the gloomy sentiment surrounding China’s economic recovery,” Commerzbank said in a note.
The most-traded August copper contract on the Shanghai Futures Exchange fell 2.4 percent on a quarterly basis. Copper inventories in warehouses monitored by the exchange rose 13 percent to 68,313 metric tons, according to its weekly data.
Copper stocks in LME-registered warehouses fell by 2,450 to 72,975 metric tons after outflows from New Orleans and Rotterdam, LME daily data showed. – Reuters
