Focus on weak demand outlook pushes copper down

Copper prices fell on Monday as markets focus on weak demand outlook, especially in China, the world's largest metals consumer, while a drawdown of the London Metals Exchange's inventories helped curb the losses.

Copper futures at the London Metals Exchange fell 0.2% to $8338, with traders citing thin trading amid the lunar new year holiday in China. 

China's troubled real estate sector continues to weigh down on copper prices and other industrial metals as manufacturing also slows down worldwide. 

However, a weaker dollar against major rivals makes greenback-denominated copper futures cheaper to holders of other currencies, underpinning porices.

Copper inventories at the London Metals Exchange fell 18% to 156.750 tonnes since mid October, which also provided some support to prices. 

Technically, the first resistance facing copper lies at $8370, then $8450, so that it's between the SMA averages of 200 and 50 days, with the support laying at $8290, which is the 100-day SMA average. 

At the London Metals Exchange, aluminium fell to $2156 a tonne, the lowest since December 14, while zinc shed 0.6% to $2447, as lead fell 0.4% to $2098, while tin rose 0.1% to $25330, as nickel shed 0.5% to $15950. 

Otherwise, the dollar stabilized negatively at 103.2 as of 16:46 GMT, with a session-high at 103.3, and a low at 103.1. 

Copper March futures fell 0.5% in American trade as of 16:40 GMT to $3.76 a pound.