Aluminium pulls back on Chinese demand concern

LONDON, Aug 10 (Reuters): Aluminium and copper prices slipped on Wednesday on worries about declining demand after data from top metals consumer China highlighted a weak construction sector.
Three-month aluminium CMAL3 on the London Metal Exchange CMCU3 dropped 0.8% to $2,470 a tonne by 1040 GMT.
China's factory-gate inflation eased to a 17-month low in July, data showed on Wednesday, as a slower domestic construction sector weighed on raw material demand.
The construction sector is a key demand driver for both copper and aluminium.
LME copper CMCU3 dipped 0.1% to $7,975.50 a tonne after earlier easing to $7,889.
"That was the initial reason for the weakness in the market overnight, but the market seems to be getting a little more resilient to this kind of news," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"In the short-term, we still have recession fears, what is going on in China and geo-political risks. That has just taken the temperature out of the investment appetite over the past few months."