Stock markets slipped as evidence of a cooling labour market and low orders for U.S.-manufactured goods followed a surprise output target cut by OPEC+ over the weekend that pushed up oil prices, threatening a flare-up in inflation.
Benchmark copper on the London Metal Exchange was down 2.2% at $8,720 a tonne at 1611 GMT, the biggest fall since March 15.
Chinese markets were closed until Thursday morning for a public holiday.
Copper has risen from a low of $6,955 last July as top consumer China abandoned its economically damaging COVID-19 restrictions, but rising interest rates and concerns over the global economy and bank lending have pushed prices from January's high of $9,550.50.
"Improving Chinese demand is likely to be countered by credit concerns in the U.S. and Europe, strong mine supply and ramping Chinese refined copper output," said analysts at BNP Paribas, predicting "limited price upside in H2 2023". Chinese demand has not risen as strongly as many expected.
Analysts at Guotai Junan Futures said orders by China's State Grid had failed to meet expectations and new orders in the solar industry and for wire and cable had contracted. Many analysts and investors remain bullish, however. "Rising demand (for copper) from electrical vehicles, renewable power generation and energy storage and transmission is already offsetting the property slowdown in China... and an economic slowdown in the West," said Saxo Bank strategist Ole Hansen.
He said the prospect of tight supply in the coming years should push copper to record highs above $10,845 in the second half of 2023.
Meanwhile, satellite surveillance of metal processing plants showed that global copper smelting activity fell in March. LME aluminium was down 1.3% at $2,366.50 a tonne, zinc fell 2% to $2,839.50, nickel slipped 1.2% to $23,095, lead edged down 0.2% to $2,110.50 and tin was down 4.3% at $24,930. (Reporting by Peter Hobson, Additional reporting by Siyi Liu and Dominique Patton; Editing by Shailesh Kuber Editing by Mark Potter)
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