Copper prices fell on Wednesday as weak manufacturing data and a struggling property sector in top consumer China soured sentiment.
Copper for delivery in September was down 1.79% on the Comex market in New York, touching $3.83 per pound ($8,426 per tonne).
Click here for an interactive chart of copper prices.
China’s manufacturing activity dropped for a fourth consecutive month in July, with the official Purchasing Managers’ Index (PMI) coming in at 49.3, below the 50 level that separates expansion from contraction.
“China’s post-reopening recovery has not met market expectations and the new data this week offered new evidence that the stimulus measures already introduced in the last couple of months are failing to have a meaningful impact,” said ING analyst Ewa Manthey.
“It looks like China is likely to finally release new stimulus measures but we will have to see what that stimulus looks like and if it will be enough in the long term to boost demand for metals.”
Also weighing on the market was a stronger US currency, which makes dollar-priced commodities less attractive for buyers holding other currencies.
Total copper inventories in LME-registered warehouses rose to a fresh two-month peak of 75,275 metric tons after the arrival of 1,200 tons, daily LME data showed.
Read More: China’s weak PMI means good news for commodities, for now
