HANOI- Copper prices in London eased on Thursday as demand was weakened due to higher prices, with poor economic data also weighing on sentiment.
Three-month copper on the London Metal Exchange (LME) eased 0.3 percent to $9,834.50 per metric ton, retreating from a 2 percent gain in the previous session, the biggest daily gain since June 6.
Meanwhile, the most-traded August copper contract on the Shanghai Futures Exchange (SHFE) advanced 1 percent to 79,890 yuan ($10,987.03) a ton.
“Copper has limited upside as exchange inventories pile up and demand remains price-sensitive,” said Sandeep Daga, a director at Metal Intelligence Centre.
The downtrend in manufacturing and service sector PMI hint at a slowdown in the world’s top two economies, Daga added.
LME copper inventory rose to 186,450 tons, the highest since October 2023. Stockpiles in SHFE warehouses have eased slightly in recent weeks, but are still at relatively high.
Latest data from the United States showed the labor market was gradually slowing and the manufacturing sector contracting for the third straight month in June.
In China, data showed another decline in broader manufacturing activity in June and services activity expanded at the slowest pace in eight months in the same month.
Copper prices had been rebounding this week, partially supported by a pick up in Chinese demand at lower prices, and as the dollar was on the back foot, making greenback-priced metals cheaper to holders of other currencies.
