Copper continues lower after weaker than expected China data (NYSEARCA:COPX)
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Copper prices fell back to near six-month lows Wednesday after data showed China’s economic recovery weakened in May, renewing concerns about the country’s growth outlook and demand for metals.
Purchasing managers surveys showed manufacturing in China contracted in May and the service sector expanding at its slowest pace in four months.
Underlining the weak metals demand, data also showed factory output declining in Japan and South Korea.
Benchmark copper (HG1:COM) on the London Metal Exchange recently traded -0.7% at $8,066.50/metric ton and near last Wednesday’s low of $7,867.
ETFs: (NYSEARCA:COPX), (NYSEARCA:CPER), (JJC), (JJCTF)
Potentially relevant stock tickers include (FCX), (SCCO), (TECK), (HBM), (BHP), (RIO), (VALE), (MT)
Prices of the metal are set to close May down ~6% after losing 4.4% in April, and traders say prices likely will remain subdued as long as weak Chinese data continues, which could last for another few months.
London zinc recently was -2% at $2,256/metric ton after LME zinc inventories nearly doubled to 87.5K tons since May 23; nickel and lead also fell, while aluminum and tin were little changed.
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