(Recasts, updates prices)
BEIJING, May 31 (Reuters) - Copper prices were under
pressure on Friday after dissapointing Chinese manufacturing
data, while the market was set for a moderate monthly rise on
speculative buying earlier this month.
Three-month copper on the London Metal Exchange
little moved at $10,133 per metric ton by 0504 GMT, while the
most-traded July copper contract on the Shanghai Futures
Exchange fell 2.2% to 81,970 yuan ($11,319.95) a ton.
China's manufacturing activity unexpectedly fell in May, an
official factory survey showed.
The official purchasing managers' index (PMI) fell to 49.5
in May from 50.4 in April, below the 50-mark separating growth
from contraction and missing a median forecast of 50.4 in a
Reuters poll.
That weighed further on demand outlook from the world's top
metals consumer, China, where recent consumption already slumped
due to recent price rally.
A speculative frenzy into copper boosted price to record
highs on May 20, before starting to trend down amid profit
taking and worries over U.S. interest rate prospect.
Investors are waiting for inflation reports from Europe and
the U.S. due later in the day for more clues on global interest
rate path.
So far, LME copper registered a monthly gain of 1.4% and was
up 18% this year.
Copper may break back below $10,000 per ton as profit taking
accelerated, ANZ research analysts noted.
Some other analysts believe the metal is set for further
increases given a widening supply deficit of raw material and
rising demand.
LME aluminium shed 0.5% to $2,690 a ton, nickel
added 0.5% to $20,165, tin moved 0.3% higher to
$33,200, and lead nudged 0.1% higher to $2,279.50, while
zinc slid 1.2% at $3,034.
SHFE aluminium fell 1.6% to 21,385 yuan a ton, tin
was down 2.1% at 272,760 yuan, nickel lost 2%
to 150,580 yuan, zinc lost 1.7% to 24,680 yuan and lead
was 0.9% lower to 18,730 yuan.
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($1 = 7.2412 Chinese yuan)