Copper loses ground on weak Chinese demand

LONDON, July 29 (Reuters): Copper prices slid on Monday on Chinese demand concerns and high inventories, while market participants awaited a Federal Reserve policy meeting and U.S. data releases this week for further direction.

Three-month copper on the London Metal Exchange fell 0.7 per cent to $9,045 per metric ton by 1106 GMT. It was down by more than 18 per cent from all-time high in late May.

"Copper seems to be holding at the key level of $9,000 but there has been a lot of negative momentum," said Ole Hansen, head of commodities strategy at Saxo Bank, adding that the expectation of long-term demand is yet to materialise.

LME copper inventories at 239,100 tons have more than doubled since the start of June while stocks monitored by Shanghai Futures Exchange have surged about tenfold so far this year, despite recently retreating to a two-month low of 301,203 tons.

"Copper buyers will come back, the drivers for the energy transition are still there," Hansen said.

Copper, widely used in making cables for its conductivity, is seen as a key to energy transition.