Copper slips after production shrinks in China

Copper fell in Asia almost one per cent, reversing early gains and London metal fell by a similar amount as ebullience after a strong first quarter gave way to caution about global demand growth.

The first quarter saw copper prices rising by about a third and traders were expecting a strong showing in the second quarter as China continues to import metal, and on hopes of a pick-up in demand boosting the market's technical appeal.

However, copper tumbled in Asia after China's manufacturing shrank for an eighth straight month in March, increasing concerns that demand for the metal may decline. Also, worries remain about how sustainable gains are if economic pump priming all over the world fails to get demand.

Shanghai copper for June delivery fell 260 yuan (Dh139) to 33,260 yuan a tonne at the closes. Prices earlier touched 33,920 yuan.

Three-month copper on the London Metal Exchange slipped $35 (Dh128) to $4,005 after rising $130 on Tuesday.

Aluminium rose 0.3 per cent to $1,396 a tonne. Shanghai aluminium fell one per cent to 12,645 yuan. Zinc slid 0.7 per cent to $1,311 a tonne, lead retreated two per cent to $1,244.25, and nickel fell two per cent to $9,655 a tonne.