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Copper slips as China information enhances weak need outlook

Copper prices pulled back on Monday as Chinese information suggesting poor demand prospects added to dissatisfaction with economic stimulus measures from the top consumer, weighing on belief.

Nevertheless, traders said losses were topped by lower copper stocks in storage facilities signed up with the London Metal Exchange ( LME) << MCUSTX-TOTAL >. At 276,100 metric heaps, stocks have dropped 15% given that late August.

Benhmark copper on the LME was down 0.4% at $9,568 a. load by 1045 GMT. It has actually mainly sold a narrow $400 variety. over the past couple of weeks.

China's commercial profits plunged in September, registering. the steepest regular monthly decline of the year, owing to elements. incuding weak demand and a sharp decline in manufacturer prices.

It's simply the current in a string of bad information from China. The authorities do not seem to be able to stop the (decrease),. one metals trader stated, including that a meeting of Chinese. authorities starting on Nov. 4 was fuelling hopes of more powerful. stimulus.

On the technical front, strong assistance for copper is available in. around $9,490 and $9,470, the 50-day and 100-day moving averages. respectively.

Further ideas on Chinese demand for industrial metals will. come later on this week from surveys of buying managers in the. producing sector, which has actually been contracting for lots of. months.

Focus is also on the result of the Nov. 4 U.S. Presidential. election, which could bring extensive tariffs on imports if. Donald Trump wins.

In other places, zinc << MZNSTX-TOTAL > came under additional pressure. after stocks rose for a third successive day to 247,075 loads,. reducing issue about scarcities on the LME market.

The deliveries are behind the constricting premium for the cash. contract over three-month zinc << CMZN0-3 > to about $18 a lot,. down from recently's peak above $58 a heap.

Three-month zinc was down 1.1% at $3,068 a load.

In other metals, aluminium slipped 1.1% to $2,648,. lead was down 1% at $2,026, tin gained 0.4% to. $ 31,450 and nickel lost 0.4% to $16,100.

(source: Reuters)