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Copper stumbles to two-week short on Chinese demand worries

Copper costs slipped to their most affordable in more than 2 weeks on Tuesday, driven down by issues that a weak Chinese economy is curbing demand in the world's most significant metals consumer.

Three-month copper on the London Metal Exchange fell 1.3% to $9,064 a metric ton by 0930 GMT for its weakest considering that Aug. 16.

Current data from China revealed that manufacturing activity sank to a six-month low in August and growth in brand-new home costs slowed in August.

China's factories and crisis-hit residential or commercial property sector are major customers of copper and other industrial metals.

People are focusing once again on a few of the weaknesses and basics. China isn't growing highly and the macroeconomic backdrop is plainly weak, stated WisdomTree product strategist Nitesh Shah.

China remains in a holding pattern today. It's awaiting the Federal Reserve to cut rates, which will provide the green light to the PBOC to do a much more broad-based monetary alleviating, he said, referring to the U.S. and Chinese main banks.

The most traded October copper contract on the Shanghai Futures Exchange closed 1.2% down at 72,890 yuan ($ 10,244.70) a ton.

Likewise weighing on metals was a two-week high for the dollar index. A more powerful U.S. currency makes dollar-priced metals more costly for buyers using other currencies.

LME zinc fell 1% to $2,812.50 a load, having actually climbed by more than 8% in August as supply issues assisted it to register its finest monthly gain because April.

Frustrating Chinese information, especially from the building and construction sector, is most likely to lead to more price decreases for zinc in the next few weeks, stated Sandeep Daga, a. director at Metal Intelligence Centre. Zinc is mostly utilized to. galvanise steel.

Among other metals, LME aluminium lost 0.6% to. $ 2,410.50 a lot, nickel edged down 0.2% to $16,585, lead. was down 0.3% at $2,052.50 and tin shed 0.6% to. $ 31,200 after touching a three-week low.

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(source: Reuters)