(Updates official prices)
By Julian Luk
London Oct 8 (Reuters) - Copper prices fell on Tuesday
to their lowest in two weeks after top metal consumer China
failed to convince investors on how its stimulus package would
drive the economy to its growth target.
Three-month copper on the London Metal Exchange
(LME) touched $9,700 a metric ton for the lowest level since
Sept. 24. It was last down 1.6% at $9,774 a ton in official
rings.
Half-day trading volumes of LME copper surged to a one-week
high after China returned from public holidays.
"There had been overshoot in copper prices as the market
priced in China's stimulus package as a game changer, but it now
looks hesitant," one trader said, adding that there was also an
element of profit-taking after rallies last week.
Copper prices hit a four-month high last week after China
announced its biggest stimulus package since the COVID-19
pandemic. Analysts had expected bold moves to lift a heavily
indebted property sector that has been weighing on consumer
confidence.
But a briefing on Tuesday provided little detail on the
stimulus other than a repeat of China's full confidence in
achieving its full-year growth target.
Industrial metals fell as the market worried that measures
announced so far will only help to stabilise growth but may not
be enough to support a rebound, said Ole Hansen, head of
commodity strategy at Saxo Bank.
Hong Kong's Hang Seng index dropped by 9.4% on
Tuesday for its heaviest fall since 2008, with record falls in
property stocks. The stimulus briefing also ate into gains on
blue-chip CSI 300 index.
Shares in copper miners, which sell to China, also dropped.
In other metals, LME aluminium lost 2.8% to $2,585 a
ton for its biggest decline in more than four months while
nickel fell 2.2% to $17,650 despite production
disruption at Vale's Onca Puma nickel plant and the operations
of Madagascar miner Ambatovy.
Zinc lost 2.2% to $3,106, tin fell 2.4% to
$33,100 and lead was down 2.2% at $2,102.
(Julian Luk in London
Editing by Varun H K and David Goodman)