Copper slips on weak Chinese data, but losses capped by supply worries

Copper prices edged lower on Wednesday after disappointing economic data in top metals consumer China, but supply concerns due to mine disruptions and the Middle East conflict helped limit losses. Benchmark three-month copper on the London Metal Exchange lost 0.2% to $13,610 a metric ton by 0945 GMT, after hitting a three-week peak in the previous session. GDP growth in the world's second-largest economy China cooled to a 3.5-year low, missing forecasts on weak domestic demand, official data showed. "The economic data from China was a bit of disappointment, so that could be what's being reflected in the softness today," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. But the downside was limited partly due to persistent supply issues, Hansen added. The most-traded copper contract on the Shanghai Futures Exchange pared back earlier gains, ticking 0.1% higher to 104,220 yuan ($15,392.11) a ton. Rio Tinto posted a 7% fall in copper output in the June quarter and said a furnace outage at its U.S. Kennecott mine is expected to affect production in the second half. "We continue to be reminded about the potential risks that come on the supply side and the high energy prices will just continue to increase the focus on electrification," Hansen added. Oil prices rose by another 2% on Wednesday after the U.S. reimposed a naval blockade on all Iranian ports and Iran threatened to close other export corridors. "The long-term The bullish story for copper most certainly has not been negatively impacted by the events of the last few months," Hansen said. Among other metals, LME aluminium fell 0.5% to $3,160 a ton, zinc dropped 1% to $3,561, lead lost 0.6% to $1,855, nickel dipped 0.2% to $16,740 and tin shed 0.9% to $53,340.