Forexpros – Copper futures edged lower on Monday, amid ongoing concerns over a slowdown in demand from top consumer China, while fresh hopes that European leaders will increase efforts to tackle the region’s debt crisis limited losses.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.582 a pound during European morning trade, shedding 0.28%.
It earlier fell by as much as 0.58% to trade at a daily low of USD3.564 a pound.
China’s HSBC services purchasing managers’ index released earlier showed that the country services sector activity fell to a three-month low of 52.5 in November from 54.1 in the preceding month.
The report came after China’s official PMI for its non-manufacturing sector, released on Saturday, dropped sharply to 49.7 in November from 57.7 in October.
The disappointing reports added to fears over the health of the world’s second largest economy after data last week showed that Chinese manufacturing activity grew at the slowest pace in 32 months in November.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Copper prices found support after Italy unveiled a EUR30 billion package of austerity measures on Sunday aimed at reducing the country’s debt load.
Meanwhile, German Chancellor Angela Merkel and French President Nicolas Sarkozy were to meet in Paris later in the day in order to outline proposals for stricter enforcement of the region’s budget discipline, ahead of Friday’s critical European Union summit.
An agreement could pave the way for an accelerated implementation of the euro zone’s rescue plan to help debt-ridden countries receive funds while encouraging bondholders to buy euro zone bonds.
Europe as a region is second after China in global demand for the industrial metal and worries over its economic growth have kept copper prices under pressure in recent months.
Elsewhere on the Comex, gold for February delivery eased down 0.1% to trade at USD1,749.85 a troy ounce, while silver for March delivery rose 0.55% to trade at USD32.86 a troy ounce.
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