Shanghai copper carried over last week’s losses to Monday, as weak Chinese factory data weighed on sentiment.
The most-active copper contract on the Shanghai Futures Exchange dropped 0.41% to 86,850 yuan ($12,192.90) per metric ton, as of 0315 GMT.
Benchmark three-month copper dipped 0.31% to $10,853.5 a ton.
Copper’s loss came as data showed factory activity in top metal consumer China remained slow.
The RatingDog purchasing managers’ index (PMI) compiled by S&P Global dropped to 50.6 in October, the survey focused on the private sector showed on Monday, missing expectation of 50.9 in a Reuters poll.
The results echoed the official survey published on Friday, which showed China’s factory activity shrank for a seventh month in October, with the official manufacturing PMI falling to 49.0 from 49.8 in September.
The reading was a six-month low and missed expectations of 49.6 in a Reuters poll, as new export orders declined, after months of front-loading to avoid potential U.S. tariffs had run their course.
A stronger U.S. dollar also weighed on the market, making commodities traded with the greenback more expensive for investors using other currencies.
Hawks at the U.S. Federal Reserve signalled reservations about cutting interest rates last week, raising questions about whether another cut is likely in December.
Copper demand in China continued to show signs of weakness amid high prices, with the Yangshan copper premium (SMM-CUYP-CN), which reflects demand for copper imported into China, at $36 a ton on Friday, dropping from $50 a ton a month ago.
Among other SHFE base metals, aluminium gained 0.78%, zinc was up 0.34%, tin rose 0.56%, while lead and nickel posted little changes.
Among LME metals, aluminium was up 0.31%, lead increased 0.55%, while zinc, nickel and tin were little changed.
Source: Reuters
