Aluminum and copper prices fell on Wednesday on concerns about weaker demand, after data from China, the world’s top metals consumer, highlighted weakness in the construction sector.
* Three-month aluminum on the London Metal Exchange fell 0.8% to $2,470 a tonne by 1040 GMT.
* China’s factory inflation eased to a 17-month low in July, data showed on Wednesday, as a slowdown in the domestic construction sector weighed on demand for raw materials.
* The construction sector is a key driver of demand for both copper and aluminum.
* Copper on the London Metal Exchange (LME) fell 0.1% to $7,975.50 a tonne, after earlier falling as low as $7,889.
* Traders were nervous ahead of US consumer inflation figures due to be released at 1230 GMT and likely to show July prices rose at an 8.7% annual pace, according to a Reuters poll. which would mean a small downward correction from 9.1% in June.
* Even if the data is weaker than expected, the US Federal Reserve is expected to raise interest rates at its September meeting, continuing a campaign to curb inflation that some investors fear could spark a recession.
* The most-traded copper contract on the Shanghai Futures Exchange, the September contract, fell 0.3% to 61,040 yuan ($9,031.99) a tonne.
* Among other base metals, LME zinc rose 1% to $3,570 a tonne, its highest since June 22, nickel fell 0.6% to $21,430, tin fell 0.5 to $24,300. dollars and lead gained 0.4% to $2,174.
* To view up-to-date base metal prices:
– COPPER
– LEAD
– TIN
– NICKEL
– ALUMINUM
– ZINC