Copper extends losses after weak factory data from China

Copper prices fell on Friday after a host of weak factory data from China, the world’s largest metals consumer, but losses were contained by the prospects of more stimulus measures by the government.

Copper’s three month futures fell 0.3% at the London Metals Exchange to $10109 per tonne. Prices are now down 9% from the May 20 high at $11104. 

Earlier Chinese data showed the manufacturing PMI fell unexpectedly in May as the real estate crisis continues to bite into growth. 

China’s manufacturing PMI fell to 49.5 in May from 50.4 in April, entering into shrinkage territory.

It’s likely that such numbers will prompt the government to extend its current suite of stimulus measures to underpin the struggling sector.

Copper July futures at the Shanghai Futures Exchange fell by 1.6% today to 82,500 yuan per tonne. 

Despite the recent losses, copper is still up 2% this month, and 19% this year overall. 

As for other metals, aluminum prices rose 0.3% at the London Metals Exchange to $2711 a tonne, while nickel rose 0.1% to $20075, as lead added 1% to $2300, while tin rose 1.2% to $33,250. Zinc fell 1% to $3041. 

Otherwise, the dollar index fell 0.2% as of 15:40 GMT to 104.5, with a session-high at 104.9, and a low at 104.3.

Copper July futures fell 0.9% in American trade as of 15:36 GMT to $4.61 a pound.