Copper rose on Monday alongside equities after the latest monthly U.S. jobs data helped buoy sentiment, but worries about demand in top consumer China kept prices near four-week lows.
Benchmark copper on the London Metal Exchange ended up 0.4 percent to $4,810 a tonne. Earlier it fell to $4,789, near Friday’s $4,783, the lowest since July 12.
Stock markets around the world rose as risk appetite revived following robust U.S. job growth in July that bolstered expectations of faster growth in the world’s biggest economy.
“Base is getting support from equities and strong employment growth in the U.S.,” said Societe Generale analyst Robin Bhar. “China’s trade data was worse than expected on both imports and exports and copper imports were very disappointing.”
China’s copper imports fell 14 percent to 360,000 tonnes in July from the previous month as softer summer demand in the world’s top consumer slowed down buying.
Overall, China’s imports fell 12.5 percent from a year earlier in July and exports fell 4.4 percent, pointing to further economic weakness.
“Demand growth in copper’s key end-use sectors remains relatively weak,” said Morgan Stanley in a note.
“We therefore expect second half copper import requirements to continue to decline – a bearish development given 2016 mine supply growth has so far beaten expectations.”
However, copper is up about 2.5 percent so far this year due to improved Chinese demand in the second quarter and a weaker U.S. currency, which makes metals cheaper for non U.S.-firms; a relationship used by funds to generate buy and sell signals.
But other metals such as zinc and tin have done better.
“(Copper has) failed to share within the gains of the broader complex, suggesting that market scepticism over the health of its fundamentals is both real and persistent,” Barclays said in a note.
Three-month zinc closed up 0.6 percent at $2,280 a tonne. It is up nearly 60 percent from January lows on concern about market deficits created by mine closures.
Tin slipped 0.3 percent to $18,300. Last week it touched $18,450, its highest since February 2015, as worries about supplies and low stocks were reinforced by news of falling exports from Indonesia.
Aluminium fell 0.2 percent to $1,642, lead added 0.3 percent to $1,791 and nickel gained 0.5 percent to $10,870.
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Source: Reuters (Additional reporting by Melanie Burton; Editing by William Hardy and David Evans)