 "Copper edges lower as China demand concerns weigh")
Copper prices edged lower on Monday, following strong gains last week, after service sector data from China failed to lift expectations for demand in the world's top consumer of metals.
Three-month copper on the London Metal Exchange traded at $6,965 a tonne in official rings, down from a close of $7,005 a tonne on Friday, when it hit a one-week high of $7,079 in intraday trade.
Copper prices closed up for the first week in three on Friday, by two per cent, but are facing losses of 12 per cent on the year.
"The data out of China has provided some reassurance that demand is not dropping off a cliff, but there are still some significant concerns about the Chinese economy and the knock-on effect for metals demand," said Ross Strachan, an economist at Capital Economics.
The show of strength in the data was tempered by a fall in prices charged by companies, suggesting demand was still too weak for firms to raise prices, which hit a nine-month low in July.
"Growth is in general coming in line with expectations, and expectations have softened over the last six months, so we are getting a downwards trend," Alexandra Knight of National Australia Bank in Melbourne said.
Three-month copper on the London Metal Exchange traded at $6,965 a tonne in official rings, down from a close of $7,005 a tonne on Friday, when it hit a one-week high of $7,079 in intraday trade.
Copper prices closed up for the first week in three on Friday, by two per cent, but are facing losses of 12 per cent on the year.
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Activity in China's services sector expanded modestly in July, a private survey showed, as new business orders recovered from a multi-year low in a rare sign of resilience.
"The data out of China has provided some reassurance that demand is not dropping off a cliff, but there are still some significant concerns about the Chinese economy and the knock-on effect for metals demand," said Ross Strachan, an economist at Capital Economics.
The show of strength in the data was tempered by a fall in prices charged by companies, suggesting demand was still too weak for firms to raise prices, which hit a nine-month low in July.
"Growth is in general coming in line with expectations, and expectations have softened over the last six months, so we are getting a downwards trend," Alexandra Knight of National Australia Bank in Melbourne said.