Copper prices fall as China data signal weaker demand ahead for base metals

LONDON — Copper prices fell on Friday as data in China pointing to a cooling economy and a worsening trade dispute between Washington and Beijing raised concerns that Chinese demand for metals would fall more than expected.

Benchmark copper on the London Metal Exchange (LME) ended down one percent at $5,973 a ton.

After closing prices were set in the LME’s open outcry ring, a Bloomberg report said US President Donald Trump had asked aides to proceed with tariffs on $200 billion more in Chinese goods. The report pushed industrial metals prices lower, with copper down 1.9% in electronic trading at 1634 GMT and slightly down on the week.

Worries that the US-China trade dispute will damage growth in China, the world’s largest metals consumer, have helped push the metal used in power and construction down some 20% from a June high.

Despite an uptick in Chinese industrial output, data on Friday suggested the country’s economy would cool further in coming months and government support measures would take time to kick in.

“The investment data were weak, and that certainly doesn’t bode well for future metals demand,” said Capital Economics analyst Caroline Bain.

She added that copper prices were likely to end the year around current levels.

The dollar regained ground after having weakened to the lowest since late July. The weakening had helped to support prices by making metals cheaper for buyers with other currencies.

Copper remains in a shortterm downtrend, but is supported between $5,940 and $5,980 by its eight- and 20-day moving averages, brokers Marex Spectron said.

On-warrant stocks of copper available to the market in LMEregistered warehouses rose 2,875 tons to 145,400 tons, but are down from more than 234,000 tons in mid-August, suggesting a tighter market.

Inventories in Shanghai Futures Exchange (ShFE) warehouses also fell to the lowest since November at 124,566 tons.

LME aluminum closed down 1.1% at $2,043 a ton and was around 1.5% this week even after 29,600 tons of fresh cancellations pushed on-warrant LME stocks down to 726,150 tons, the lowest since February 2007.

ShFE stocks also down fell to the lowest since March at 853,749 tons.

China’s aluminum and steel production fell in August from the previous month, but output of both metals would likely be at a record high this year, analysts at Commerzbank said.

Among other industrial metals, LME zinc finished down 1.1% at $2,334 a ton; nickel gained 0.4% to $12,655; lead ended 0.2% higher at $2,040; and tin closed down 0.1% at $19,040. —