Copper prices extended their losses on Friday and were on track for a 2% weekly decline on concerns about global economic growth and demand in China, the world’s largest consumer of the metal.
* At 1021 GMT, the benchmark copper on the London Metal Exchange (LME) subtracted 0.5% to 8,840.5 dollars a tonne.
* “Copper is under pressure following disappointing US data and risk aversion sentiment is affecting markets towards the end of the week,” said Ewa Manthey, analyst at ING. “While China dictates the bulk of metals prices, slowing global economic growth could limit price gains going forward.”
* World stock markets suffered in the session, as investors scrutinize economic data for clues on the likelihood of more interest rate hikes and a possible U.S. recession.
* The dollar posted its first weekly gain in more than a month, making dollar-denominated metals more expensive for buyers of other currencies.
* Copper, used in energy and construction, hit a seven-month high in January after China lifted its tight COVID restrictions, but prices of the metal have since fallen as Chinese demand did not increase as much as expected.
* Stocks in warehouses monitored by the Shanghai Futures Exchange retreated 2.3% this week to 146,016 tons.
* In other base metals, aluminum on the LME was down 1% at $2,397.5 a tonne; zinc was down 0.7% at $2,752; nickel lost 2.1% to $24,545; tin was off 1.6% to $26,500; and lead was up 0.1% to $2,155.