LONDON- Copper prices came under pressure on Monday from worries about demand, particularly in top consumer China, and a stronger dollar which makes metals priced in the US currency more expensive for holders of others.
However, copper recovered after the New York open as the dollar retreated in afternoon trade after the release of weak US economic data, traders said.
Benchmark copper prices on the London Metal Exchange (LME) had gained 1.5 percent to $8,359 a ton. Prices of the metal used in the power and construction industries have dropped 10 percent since the middle of April.
Traders said activity was subdued and that Chinese trade data later this week could provide clues to demand.
“China does not represent any upside risk to metal markets for now. Its property market is too soft and too important to be disregarded,” said Julius Baer analyst Carsten Menke.
“But the long-term outlook for copper from the energy transition has not changed, it is still bullish. Around $8,000 a ton would be a good buying opportunity.”
China is working on new measures to support the property market, but consumer caution about big-ticket spending amid concerns over incomes and jobs as a post-pandemic recovery loses steam is a headwind.
