LONDON: Copper prices edged up on Friday but were on track for a weekly decline under pressure from a softer demand outlook in top metals consumer China and high exchange stockpiles.
Three-month copper on the London Metal Exchange was up 0.1% at $9,798 per metric ton by 1003 GMT. It has declined 1.5% so far this week.
China’s data on Friday showed total imports unexpectedly shrank and hit a four-month low, while exports rose 8.6%. Chinese bank lending jumped less than expected in June, while annual growth of outstanding total social financing (TSF), a broad measure of credit and liquidity in the economy, slowed to 8.1%, a record low.
“Near-term risks remain to the downside for demand for copper, particularly related to China,” said ING commodities analyst Ewa Manthey.
“The prolonged crisis in the property sector does not show signs of bottoming out yet with little hope for recovery near-term. The low level of housing starts will continue to weigh on copper demand looking ahead, given the lag between starts and metals usage.”
ING expects copper prices to decline further before they move upwards in the fourth quarter.
Copper slips as rising stocks highlight poor demand prospects
Copper, used in power and construction, is down 12% since reaching a record high of $11,104.50 on May 20, but is still up 14% since the start of 2024.
Still-high global prices suppressed buying appetite in China, where unwrought copper imports declined to a 14-month low in June.
Meanwhile, copper inventories in the LME-registered warehouses are hovering near the highest in more than 2-1/2 years. Inventories in warehouses monitored by the Shanghai Futures Exchange fell 1.7% this week after hitting a four-year peak last month.
LME aluminium shed 0.2% to $2,472 a ton after hitting a three-month low of $2,465, and nickel rose 0.2% to $16,825 after hitting $16,770, lowest since March 28.
Zinc dropped 1.4% to $2,917, tin lost 2.4% to $33,810, and lead moved 0.6% lower to $2,185.
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