London copper rebounds after price slide

London copper prices rebounded on Monday as buyers were tempted back by the drop in prices after the metal's biggest weekly loss since mid-July and by signs of more stable demand in China.

Three-month copper on the London Metal Exchange was up 1.5% at $9,134.50 a metric ton by 0815 GMT, reversing losses in early trade.

The most traded October copper contract on the Shanghai Futures Exchange lost 0.3% to 72,410 yuan ($10,181.67) a ton.

Copper prices, often viewed as an economic bellwhether, were in retreat last week, coumpounded by jobs data showing U.S. labour market momentum slowing more than expected.

However, the market has rebounded on the price dip, with investors still holding an optimistic view on copper's longer-term demand outlook, analysts said, while expectations of a September cut to interest rates also underpins the market.

Chile's state-run copper commission said last week that a global shortage of mined copper will continue into 2025.

Meanwhile, consecutive inventory declines in China, the world's top consumer, suggest demand is stabilising.

Investors are awaiting further data this week for more clues on U.S. interest rates and Chinese demand.

China's consumer inflation accelerated in August to the fastest pace in half a year but that was due more to higher food costs from weather disruptions than a recovery in domestic demand as producer price deflation worsened.

In other metals, LME nickel rose 0.5% to $15,975 a ton, lead added 0.4% to $1,970, aluminium was little changed at $2,343 while zinc advanced by 1% to $2,744.50 and tin firmed by 0.4% to $31,150.

SHFE aluminium was down 0.4% at 19,215 yuan a ton, nickel declined 0.8% to 122,800 yuan, zinc gained 0.5% to 22,845 yuan, lead lost 2.5% to 16,475 yuan and tin rose 0.5% to 251,340 yuan.