Base metals hit 2-mth low

Base metals hit two-month low in London due to slowing factory output growth in China coupled with deteriorating demand outlook following uncertainty in the recovery in global economy. Copper hit the low of $7,033.5 in early Monday trade on the London Metal Exchange. The metal lost around four per cent in January, the weakest monthly performance in seven months.

Experts believe copper may decline further to hit $7,200. Aluminium prices remain under pressure by bulging global inventories. Prices on Monday stayed over four-year lows of $1,698.25 a tonne tipped on Friday, at $1,703 a tonne. Other metals broadly moved in tandem with copper and aluminium.