Pressure from Steady Dollar and Investor Caution
Copper prices started the week on a lower note as a steady dollar exerted pressure. And investors exercised caution while eagerly anticipating key economic data from the U.S. and China.
On the London Metal Exchange, the three-month copper slid 0.3% to $8,553 per metric ton after a slight weekly decline.
Focus on U.S. and China Economic Data
The most-traded September copper contract on the Shanghai Futures Exchange also experienced a 0.4% drop to 69,030 yuan ($9,601.77) per metric ton.
Global investors are intently focusing on inflation data from both the U.S. and China, set to be release later in the week. As it is expect to provide valuable insights into the demand outlook for copper.
Uncertainty in Metals Demand in China
Participants in the market remain wary of metals demand in China. As existing policy measures have failed to stimulate the market and signal promising demand for industrial metals.
The recent market tightness in China led to copper premiums in the spot market reaching a one-month high at 285 yuan per metric ton last week.
Supply Outlook for August
Supply of copper is anticipat to improve in August as numerous smelters are set to resume production after completing summer maintenance. However, the impact on prices remains uncertain given the cautious sentiment surrounding demand.
Amid the downward pressure on copper prices, LME aluminum dipped 0.1% to $2,229.50 per metric ton, zinc shed 0.2% to $2,498, nickel declined 0.4% to $21,220. While lead increased 0.3% to $2,133.50, and tin nudged 0.2% higher to $27,750.
On the SHFE, aluminum eased 0.1% to 18,490 yuan per metric ton, lead dropped 0.6% to 15,885 yuan, nickel fell 2.3% to 165,740 yuan, tin slipped 0.7% to 227,980 yuan. While zinc gained 0.1% at 18,490 yuan.