Copper declines as dollar gains ground amid demand uncertainty

Copper prices fell on Monday as the dollar edged up against major rivals and amid expectations for weaker demand and higher supplies from China.

Copper three-month futures at the London Metals Exchange fell 0.7% to $8,511.50 a tone.

Copper September futures at the Shanghai futures exchange fell 0.5% to 68930 yuan a tone.

Investors await major inflation data from the US and China later this week to gather more clues on the state of economic performance in both countries.

Traders were cautious about metals demand in China as recent stimulus measures failed so far to prop up growth.

In China, imports fell in recent months and supplies ran out, in turn raising spot copper prices to a month high at 285 yuan per tone.

However supplies are expected to increase in August as many factories resume their operations after summer break.

In fact, The Shanghai metals market expects refined copper to reach a record high production in August at 986100 tones.

At the London Metals Exchange, aluminium fell 0.4% to $2224.5 a tone, while zinc fell 0.7% to $2485 , as nickel fell 0.4% to $21,220, while lead added 0.2% to $2132, and finally tin rose 1% to $27,985.

Otherwise, the dollar index rose 0.1% as of 16:24 GMT to 102.07, with a session-high at 102.3, and a low at 101.9.

Copper September futures fell 0.9% as of 16:21 GMT to $3.83 a pound.