Copper and other industrial metals declined on Friday after weak economic data from top consumer China fanned concerns over demand and hopes of a further Federal Reserve rate cut this year faded.

Benchmark three-month copper on the London Metal Exchange was down 0.6% to $10,890 per metric ton at 1026 GMT, having slipped to as low as $10,827.50 earlier in the session.

The metal used in power, construction and manufacturing was still on course for a weekly gain of around 1.6%, having briefly crossed the $11,000 mark on Thursday. Copper hit an all-time peak of $11,200 on October 29.

“We expect that previous highs will now act as robust resistances, as markets struggle to find new fundamental catalysts strong enough to sustain a lasting breakout,” analysts at brokerage Sucden Financial said in a note.

“We expect a short-term consolidation period, particularly if fundamental conditions remain unchanged.”

China’s factory output and retail sales grew at their weakest pace in over a year in October, piling pressure on policymakers to revamp the $19 trillion export-driven economy.

Copper inventories in warehouses monitored by the Shanghai Futures Exchange fell 4.9% from a week ago to 109,407 tons, the bourse said on Friday.

Meanwhile, hopes of a U.S. interest rate cut in December dimmed after a growing number of Fed policymakers signalled reticence on further easing.

The entire LME complex was in the red. Aluminium ALI1! fell 1.4% to $2,856.50 a ton, zinc ZNC1! dropped 1.1% to $3,021, and nickel NICKEL1! sank 0.9% to $14,845, after touching its lowest since August 1. Tin FTIN1! dipped 0.6% to $37,005, while lead LEAD1! lost 0.4% to $2,069.50.

“Apart from tin and zinc, nearby spreads remain in contango, suggesting availability of deliverable material and limited tightness in the front-end of the curve,” Sucden Financial said.
Source: Reuters