METALS-London copper falls as China factory activity contracts

Credit: REUTERS/George Frey

Aug 1 (Reuters) - Copper prices in London fell on Monday after disappointing factory data from top consumer China reaffirmed weak demand outlook that has been pressuring the metals market.

Three-month copper on the London Metal Exchange CMCU3 fell 0.3% to $7,895 a tonne by 0139 GMT, retreating from a three-week high hit in the previous session.

LME aluminium CMAL3 declined 1.8% to $2,444.50 a tonne, zinc CMZN3 shed 1.2% to $3,270.50 a tonne and lead CMPB3 eased 0.2% to $2,031 a tonne.

China's factory activity contracted unexpectedly in July after bouncing back from COVID-19 lockdowns the month before, as fresh virus flare-ups and a darkening global outlook weighed on demand, a survey showed.

But falling copper output by miners lent prices some support.

Codelco, the world's biggest copper producer, said it produced 736,000 tonnes of copper between January and June, a 7.5% fall versus the first half of 2021.

Miner and trader Glencore GLEN.L cut its full-year copper guidance, partly due to reduced production from its Katanga mine in the Democratic Republic of Congo on geotechnical problems.

The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 rose 1.8% to 60,760 yuan ($9,006.02) a tonne, tracking the previous session's gains in London.

ShFE aluminium SAFcv1 fell 1.9% to 18,320 yuan a tonne. Nickel SNIcv1 jumped 6.7% to 180,350 yuan a tonne and tin SSNcv1 rose 4.4% to 200,530 yuan a tonne.

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0500 India S&P Global Mfg PMI July

0750 France S&P Global Mfg PMI July

0755 Germany S&P Global/BME Mfg PMI July

0800 EU S&P Global Mfg Final PMI July

0830 UK S&P GLBL/CIPS Mfg PMI July

0900 EU Unemployment Rate June

1345 US S&P Global Mfg PMI Final July

1400 US ISM Manufacturing PMI July

($1 = 6.7466 yuan)

(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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