Copper prices, viewed as a gauge of economic health, were headed for their biggest monthly loss since June 2022 on Friday, dragged by global economic headwinds and weak demand from top consumer China.
Three-month copper on the London Metal Exchange dipped 0.1% at $8,577 a tonne by 0724 GMT. The contract has lost 4.6% so far this month.
The daily gains were supported by a weaker dollar, which makes the greenback-priced commodity less expensive for those holding other currencies.
Also, falling prices triggered opportunistic buying, as supply headwinds still weighed on the market, according to an ANZ research note. Chinese copper miner MMG Ltd recorded a 15% on-year drop in its first quarter copper production to 58,644 tonnes, while it maintained full-year copper production guidance at between 305,000 tonnes and 353,000 tonnes. Throughout April, prices of copper, used widely in construction, transportation and home appliances sectors, were under pressure.
China posted lower-than-expected demand for April, with participants struggling to see clear signs of any significant improvement.
"Demand indicators remain mixed in China, with construction activity stabilising around 2022 levels and property sales turning lower again," said Lynn Zhao, a commodity strategist at Macquarie. The most-traded June copper contract on the Shanghai Futures Exchange rose 1% to 67,410 yuan ($9,738.66) a tonne but was down 3.5% this month.
LME aluminium nudged 0.1% lower to $2,316 a tonne, nickel fell 1.1% to $23,830. Zinc rose 0.5% to $2,634.50, tin gained 1% to $26,145, and lead ticked up 0.9% to $2,118.50.
SHFE aluminium slid 0.5% to 18,470 yuan a tonne, lead edged down 0.2% to 15,255 yuan, while tin climbed 2% to 212,380 yuan, nickel rose 1.3% to 182,320 yuan and zinc was up 0.2% at 21,280 yuan. SHFE will be closed from May 1-3 for a national holiday.
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