Copper dipped for a third session on Monday, June 18, on fears trade tensions between the world’s two largest economies could escalate and demand from China could cool following lacklustre data last week.
Benchmark copper on the London Metal Exchange was down 0.1 percent to $7,015 per tonne at 0940 GMT, amid thin trade due to a Chinese holiday. The industrial metal earlier touched a near two-week low of $6,978.
“Metals are still being pulled down by the looming trade war between China and the United States,” said Commerzbank senior commodity analyst Daniel Briesemann.
“If sentiment worsens further then this will weigh further on metals prices. Metals could be affected directly if it comes to tariffs on automobiles and automobile parts.”
U.S. President Donald Trump said he was pushing ahead with hefty tariffs on $50 billion of Chinese imports on Friday as Beijing immediately vowed to respond in kind.
China posted weaker-than-expected industrial output, investment and retail sales for May on Thursday, signalling further weakness ahead if Beijing sustains its crackdown on factory pollution and local government spending.
China is the world’s top consumer of metals such as copper and any sign of weakness in its economy saps demand for the industrial metals.
Japan’s exports rose in May at the fastest pace in four months thanks to increased shipments of cars, car parts, and semiconductor equipment in a sign that global demand is gaining strength.
Hedge funds and money managers raised their net long positions in COMEX copper in the week to June 12 by 28,941 contracts to 77,740 contracts, U.S. Commodity Futures Trading Commission (CFTC) data showed on Friday. This was the strongest net long position since January.
Aluminium hit its weakest in nearly eight weeks at $2,193.50. Support is seen at $2,175 a tonne, the 200-day moving average, Reuters reports.
Lead rose 1 percent to $2,428 per tonne, tin was little changed at $20,790, zinc was steady at $3,082 and nickel added 0.4 percent to $15,245.
