Copper inches lower on China demand concerns
Updates prices
June 24 (Reuters) -Copper prices were subdued on Monday, weighed by a firmer U.S. dollar and concerns over muted demand from top consumer China.
Three-month copper on the London Metal Exchange CMCU3 was down 0.3% at $9,648.50 per metric ton, as of 0700 GMT.
The most-traded copper contract on the Shanghai Futures Exchange SCFcv1 lost 1.6% to 78,670 yuan ($10,833.55) a ton.
"There are still macro concerns which are propping up as China is still struggling. If we see things improving in China, then prices will pick up," said ANZ analyst Soni Kumari.
"But on the medium to long term, copper is supported by structural shift in energy transition and supply challenges."
Expectations of shortages and the prospect of strong demand in coming years drove LME copper to records above $11,100 in May. However, prices have since slipped 13% on uncertainty about Chinese demand pick-up and the timing of U.S. interest rate cuts.
Fiscal revenue in China fell 2.8% in the first five months of 2024 from a year earlier, official data showed, as weak demand drags on the economic recovery.
The dollar hovered near an eight-week peak, making greenback-priced metals less attractive to buyers holding other currencies. USD/
On the technical front, LME copper may retest support at $9,579 per ton this week, a break below which could open the way towards the $9,262-$9,368 range, according to Reuters technical analyst Wang Tao.
LME aluminium CMAL3 slipped 0.5% to $2,501.00 a ton, nickel CMNI3 fell 0.4% to $17,155.00, zinc CMZN3 eased 0.4% to $2,834.00, lead CMPB3 shed 0.4% to $2,181.50, and tin CMSN3 was up 0.3% at $32,690.00.
SHFE aluminium SAFcv1 fell nearly 1% to 20,360 yuan a ton, nickel SNIcv1 dipped 1% to 134,050 yuan, lead SPBcv1 gained 0.6% to 18,890 yuan, while zinc SZNcv1 eased 1% to 23,655 yuan and tin SSNcv1 dropped 0.3% to 273,3780 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Sherry Jacob-Phillips and Rashmi Aich
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