LONDON, Jan 02 (Reuters): Copper prices hit 3.5-month lows on Wednesday as worries about economic and demand growth in top consumer China were reinforced by manufacturing data showing shrinkage.
Benchmark copper on the London Metal Exchange was down 1.4 per cent at $5,880 a tonne at 1048 GMT from an earlier $5,878 a tonne, its lowest since Sept. 18.
CHINA: The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) for December fell to 49.7 from 50.2 in November, marking the first contraction since May 2017. Manufacturing is a key source of jobs in China's economy.
China accounts for half of global copper consumption estimated at around 24 million tonnes this year.
TRADE: One major reason behind slowing growth is the US-China trade dispute. Last month the two countries agreed a 90-day ceasefire to allow time for fresh talks to try and end a dispute that has seen them impose increasingly severe tariffs on each others' goods.
PRODUCTION: Chile produced 540,720 tonnes of copper in November, its highest in 13 years, as ore grades and efficient processing favoured increased output in the world's top producer of the metal, the government said on Monday.
RUSAL: The LME confirmed on Monday it would lift the suspension on aluminium produced by Russia's Rusal if US sanctions are lifted, saying a consultation with users had not raised any objections to the plan.
ALUMINIUM: Three-month aluminium was up 0.4 per cent at $1,853 a tonne. It touched $1,830 on Monday, the lowest since February last year, on worries about oversupply despite Chinese producers' plans to cut capacity.
Copper prices hit 3.5-month low
FE Team | Published: January 02, 2019 20:38:49
Copper prices hit 3.5-month low
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