(Updates prices)
June 28 (Reuters) - Copper prices in London firmed on
Friday, but were on track for their first monthly decline since
February amid patchy economic growth in top consumer China and
higher inventories.
Three-month copper on the London Metal Exchange was
up 1% at $9,608 per metric ton, as of 0711 GMT. The contract has
fallen 4.4% in June and is set for a sixth straight weekly loss,
if current trend holds.
After advancing to a record high of $11,104.50 on May 20,
copper prices have fallen 14%, partly on sluggish economic data
from China and uncertainty over U.S. interest rates.
"Markets have shifted their view to the reality of the
fundamentals, and the reality is that demand is weak, especially
in China. Meanwhile, if we look to ex-China, the health of
manufacturing remains clouded, U.S. is performing better, but
Europe remains in manufacturing recession," said StoneX analyst
Natalie Scott-Gray.
"I think we will see copper average around $9,500 per ton
for the year, but prices will likely go above $10,500 by the
year-end, when I suspect we have the first U.S. rate cut."
Copper inventories in warehouses monitored by
the Shanghai Futures Exchange were at 322,910 tons last week,
compared with about 30,000 tons in January, reflecting the
abundant supply in China.
The most-traded August copper contract on the Shanghai
Futures Exchange rose 0.6% to 78,370 yuan ($10,784.07),
but was set to post its worst month since July 2022.
In the broader market, the dollar was headed for a monthly
gain, making the greenback-priced metals more expensive to
holders of other currencies.
LME aluminium gained 1% to $2,516.50 a ton, nickel
edged 0.8% higher to $17,240, zinc rose 1.9% to
$2,985, lead advanced 1.2% to $2,207, and tin
climbed 2.4% to $32,960.
SHFE aluminium rose 0.3% to 20,320 yuan a ton,
nickel eased 0.2% to 134,760 yuan, lead was up
0.9% at 19,440 yuan, while zinc advanced 1.9% to 24,665
yuan and tin firmed 2.9% at 274,340 yuan.
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($1 = 7.2672 Chinese yuan)