May 15 (Reuters) - Benchmark London copper fell during
Asian trading on Monday, resuming its downtrend after a
late-session rebound on Friday, as the U.S. dollar firmed and
investors braced for industrial activity data from top metals
consumer China.
Three-month copper on the London Metal Exchange was
down 0.6% at $8,205 a tonne, as of 0312 GMT. It slumped to its
lowest in more than five months on Friday at $8,136.50, weighed
down by concerns over the pace of China's economic recovery,
rising inventories and the dollar's strength.
The dollar hit a five-week high against major peers as it benefited from inflation worries at home and slowdown
concerns globally. A stronger dollar makes greenback-priced
metals more expensive for holders of other currencies.
Investors also remained on edge as China is due to report
monthly industrial production, retail sales and fixed asset
investment data on Tuesday, analysts said.
"China's April activity readings will be an important gauge
of the extent to which the post-zero-COVID recovery has
faltered, as suggested by recent PMI, imports and credit data,"
said Ray Attrill of National Australia Bank.
Copper prices have fallen about 14% since hitting a high of
$9,550.50 a tonne in January, when the metal was propped up by
optimism around Chinese demand after Beijing lifted COVID curbs.
China's central bank rolled over maturing medium-term policy
loans while keeping the interest rate unchanged on Monday, as
expected, but markets expect monetary easing may be inevitable
in the coming months to support the economic recovery.
The most-traded June copper contract on the Shanghai Futures
Exchange added 0.1% at 64,430 yuan ($9,321.34) a tonne.
LME aluminium shed 0.3% to $2,224 a tonne, nickel dropped 0.7% to $22,070, zinc dipped 0.5% to
$2,537, tin fell 1.1% to $24,570, while lead gained 0.1% to $2,077.50.
SHFE aluminium rose 0.5% to 17,985 yuan a tonne,
zinc dipped 0.1% to 20,800 yuan, lead eased
0.4% to 15,190 yuan, tin dropped 1.8% to 197,700 yuan,
while nickel gained 0.8% to 169,680 yuan.
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(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu)
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