Copper set for weekly fall on concerns about demand outlook

Copper was on track for a weekly fall on Friday, weighed down by demand concerns fuelled by weak economic data from top consumer China, although losses were limited by falling inventories.

Three-month copper on the London Metal Exchange (LME) was down 1.2% on a weekly basis as of 0815 GMT and on track for a second straight week of decline. On a daily basis, the contract edged up 0.3% at $9,118 a metric ton.

The most-traded October copper contract on the Shanghai Futures Exchange (SHFE) rose 1.5% to 73,050 yuan ($10,308.62) a ton. However, it was down 2.8% on a weekly basis.

Copper has been trading around the $9,000 level on the LME without a clear direction because of contrasting signals from the market, said ANZ analyst Soni Kumari.

Slowing manufacturing activities and sales of electric vehicles in China have weighed on prices and the demand outlook for metals, while falling inventories and mine supply disruptions are supporting nickel and copper prices, she said.

SHFE copper inventories fell to 215,374 tons on Friday, the lowest since March 1. Meanwhile, Chile's state-run copper commission Cochilco said in a study the shortage of copper concentrate would continue into 2025.

Unless there is a material deterioration in consumption and the Chinese government doesn't explore any further stimulus to defend growth which could trigger a sell-off, prices are supported for now, said Kumari.

LME nickel fell 0.7% to $15,965 a ton, lead eased 0.3% to $1,990, aluminium edged down 0.1% at $2,376, while zinc rose 0.4% to $2,748 and tin advanced 1% to $31,070.

SHFE aluminium fell 0.1% to 19,310 yuan a ton, nickel declined 0.9% to 123,920 yuan, zinc dropped 1.4% to 22,850 yuan, lead lost 1.1% to 16,915 yuan, while tin rose 2% to 253,780 yuan.