Copper prices, seen as an economic bellwether, were weighed down by latest U.S. data showing a loss of labor market momentum, and slumping retail sales and manufacturing activity. The dollar was eyeing its first weekly gain in more than a month as bets of another rate hike from the U.S. Federal Reserve in May firmed. However, soft economic data pointing to a slowing U.S. economy capped gains. A stronger dollar makes the greenback-priced metal less affordable for buyers holding other currencies. Also weighing on the market was the rising production and soft demand in China. China's refined copper production in March jumped 9% year on year to a record high of 1.05 million tonnes, data from the National Bureau of Statistics showed.
The Yangshan premium, which reflects demand for imported copper into China, remained at an over one-year low at $27.50 a tonne this week. "Demand remains the key for imports. If China demand can improve, we should see price arbitrage open again to attract import inflow, but so far copper demand has been disappointing since the second half of March," said Lynn Zhao, a commodities strategist at Macquarie.
Most other metals prices fell. LME aluminium lost 1.1% at $2,393.50 a tonne, zinc eased 1% to $2,742, tin dropped 3.1% to $26,110, nickel shed 1.9% to $24,590, while lead gained 0.3% to $2,158.50. SHFE aluminium declined 1.2% to 18,890 yuan a tonne, nickel tumbled 3% to 189,510 yuan, lead slipped 0.7% to 15,290 yuan, tin fell 2.7% to 212,600 yuan, zinc dipped 0.4% at 22,020 yuan.
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