(Adds comments, updates prices)
June 24 (Reuters) - Copper prices were subdued on
Monday, as a firmer U.S. dollar and concerns over muted demand
from top consumer China kept traders on the sidelines.
Three-month copper on the London Metal Exchange was
down 0.1% at $9,672.50 per metric ton, as of 0448 GMT.
The most-traded copper contract on the Shanghai Futures
Exchange lost 1.6% to 78,730 yuan ($10,809.21) a ton.
"There are still macro concerns which are propping up as
China is still struggling. If we see things improving in China,
then prices will pick up," said ANZ analyst Soni Kumari.
"But on the medium to long term, copper is supported from
structural shift in energy transition and supply challenges."
Expectations of shortages and the prospect of strong demand
in coming years drove LME copper to records above $11,100 in
May. However, prices have since then slipped 13% on uncertainty
about China demand pick up and the timing of U.S. interest rate
cuts.
Analysts at Citi Research said that consensus is pricing in
$11,000-12000 per ton of copper for the next couple of years.
Fiscal revenue in China fell 2.8% in the first five months
of 2024 from a year earlier, official data showed, as weak
demand drags on the economic recovery.
The dollar hovered near an eight-week peak as traders look
forward to fresh clues on the U.S. inflation path this week that
will likely influence interest rates.
A stronger dollar makes greenback-priced metals less
attractive to buyers holding other currencies.
LME aluminium slipped 0.3% at $2,505.50 a ton,
nickel rose 0.4% to $17,275.00, zinc firmed 0.2%
at $2,846.00, lead shed 0.1% to $2,186.00, and tin
was up 0.4% at $32,675.00.
SHFE aluminium fell 0.9% to 20,375 yuan a ton,
nickel dipped 0.4% to 134,820 yuan, lead
gained 0.4% to 18,855 yuan, while zinc eased 0.3% to
23,820 yuan and tin dropped 0.5% to 273,300 yuan.
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($1 = 7.2615 yuan)