LONDON- Copper prices in London reversed earlier losses as the US dollar retreated on Friday but hit a third straight weekly decline due to disappointing economic data from top consumer China and ongoing woes in its property sector.
Three-month copper on the London Metal Exchange nudged into positive territory, up 0.2 percent at $8,250 per metric ton. The metal, used in power and construction, is down 0.5 percent so far this week.
“The outlook for industrial metals continues to deteriorate as concerns over China’s economy escalate. It’s a challenging environment for metals and more declines are likely as China keeps on disappointing,” said ING analyst Ewa Manthey.
China, the world’s second largest economy, is targeting 5 percent annual growth this year.
After July economic activity data failed to match expectations, an increasing number of economists are warning that it could miss the goal unless Beijing ramps up support measures.
A strong US currency which was still up for a fifth consecutive week amid China-related worries and bets that US interest rates would stay high, kept pressure on dollar-priced metals by making them less attractive for buyers holding other currencies.
“Further US rate hikes could add more headwinds to an already slow demand for metals,” Manthey said. – Reuters
