SINGAPORE, Nov 29: London copper edged up on Friday after finishing unchanged in the previous session but was on track for its biggest monthly loss since June as slowing demand from top consumer China dragged on prices.
China’s manufacturing activity probably grew at a slower pace in November as demand weakened, a Reuters poll showed, reinforcing signs of a modest slowdown in the economy at the year-end as Beijing shifts its focus to market-based reforms.
China will release official manufacturing figures on Monday.
Cold winter weather is already having an impact on copper use in the north of China, said analyst Chunlan Li at consultancy CRU in Beijing.
‘The weather is already very cold and impacting construction, but in the south projects are still ongoing,’ she said, adding that seasonal demand for power cables should help shore up the market towards year-end.
Further out, worries about an increase in supply in China arriving in the second half of next year are hanging over the market, she said.
Li sees copper supported at $6,800 in the first half of 2014.
On Friday, three-month copper on the London Metal Exchange rose 0.27 percent to $7,038.75 a tonne by 0250 GMT. LME copper has rebounded from three-month lows of $6,910 hit last week, but prices are still on track for a drop of nearly 3 percent this month.
The most traded February copper contract on the Shanghai Futures Exchange edged up 0.20 percent to 50,590 yuan ($8,300) a tonne.
Reflecting a tough market for aluminium prices, which have been dogged by a global surplus, miner Rio Tinto said it would stop alumina production at its Gove refinery in Australia as the plant is no longer viable.
LME aluminium hit four-year lows at $1,744 a tonne this week.
The biggest loser of the month was nickel, however. It has chalked up losses of more than 8 percent as global stocks swell to record highs amid declining use from stainless steel makers.
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin
($1 = 6.0925 Chinese yuan)
(AGENCIES)
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