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Copper under pressure on China demand concerns



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BEIJING, July 23 (Reuters) - Copper prices were under pressure on Tuesday amid growing concerns over the demand outlook in top consumer China after the latest policy pledges disappointed.

Three-month copper on the London Metal Exchange CMCU3 was up 0.2%at $9,236 per metric ton as of 0429 GMT, while themost-traded September copper contract on the Shanghai Futures Exchange SCFcv1 slid 0.9%to 75,520 yuan ($10,382.47) a ton.

Both contracts were at the lowest level since early April.

"There are growing fears of worsening economic situation," a Chinese futures trader said.

Last week, China reported weaker-than-expected second-quartereconomic growth, raising concerns about metals demand andsparking a sell-off in the market.

On Monday, the country's central bank surprised markets by cutting major short- and long-term interest rates, its first such broad move since August last year.

However, this did little to ease concerns around demand. The market was also disappointed by a lack of further stimulus from the plenum last week, ANZ analysts said in a note.

Amid subdued domestic consumption, Chinese copper producers shipped out a record157,751 metric tons last month, contributing to higher inventories in LMEwarehouses that weighed on prices.

The global refined copper market showed a 65,000 metric tons surplus in May, compared with an 11,000 metric tons surplus in April, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

But with falling prices, trades in China became more active this week, traders said.

LME aluminium CMAL3 gained 1% to $2,321.50 a ton, lead CMPB3 added 0.4%at $2,091.50, zinc CMZN3 was 0.5%higher at$2,739, tin CMSN3 rose 1% to $30,175, while nickel CMNI3 was down 0.2%at $16,160.

SHFE aluminium SAFcv1 dropped 1% to 19,360yuan a ton, nickel SNIcv1 dipped 0.2% to 128,760yuan, lead SPBcv1 slid 0.8%to 19,135 yuan, tin SSNcv1 lost 2.5%to 251,590yuan and zinc SZNcv1 shed 0.6%to 23,280 yuan.


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($1 = 7.2738 Chinese yuan renminbi)



Reporting by Siyi Liu and Mei Mei Chu; Editing by Subhranshu Sahu and Eileen Soreng

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