Monday blues: Copper loses Friday momentum
Copper slid again on Monday to $3.14 after making some gains late last week. Spot prices in New York settled just below $3.16.
The metal recovered from a near three-year low on positive Chinese manufacturing data last Thursday but lost again on Monday as Chinese service sector results disappointed investors.
In London, three-month copper hit $6,975 per tonne, down from $7,005 at closing on Friday, Reuters reports. Meanwhile, Comex September copper settled at $3.16 per pound compared to $3.17 last close.
"The data out of China has provided some reassurance that demand is not dropping off a cliff," Ross Strachan, an economist with Capital Economics told Reuters. "But there are still some significant concerns about the Chinese economy and the knock-on effect for metals demand."
The new data suggests that although the services sector grew modestly, price drops among Chinese producers indicate that demand is still not high enough to raise prices.
Investors watch Chinese demand closely as the Asian giant consumes 42% of global copper production.