Copper falls on stronger $US
Copper has slid from near a one-month high as a stronger US dollar weighed on the market and planned output cuts by miners failed to ease concerns over ample supplies.
Benchmark copper on the London Metal Exchange closed 0.4 per cent lower at $US5,285 a tonne, after climbing to near a four-week high earlier in the day.
Copper prices fell as better-than-expected US data on industrial output and consumer sentiment lifted the US dollar, making metals denominated in the currency more expensive for non-US buyers.
"It's likely a function of the strength in the dollar," said Matthew Hasson, sales specialist in mining at Numis.
"As the dollar started gaining strength, metals started selling off."
The market was also pressured by renewed oversupply concerns, as copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 11.4 per cent.
LME-approved warehouse inventories, meanwhile, dropped to a new eight-month low of 292,950 tonnes, down more than 20 per cent since a peak in late August. But they have still risen nearly 66 per cent this year, suggesting robust global inventories.
Ample stocks offset previous upbeat sentiment on the back of output reductions, even as Chile's Antofagasta Plc became the latest producer to cut back its copper exploration activities.
"When you get down to lower price levels, which we expect in the next six to 12 months, you will see more supply cuts," said Richard Knights, analyst at Liberum.
"But we haven't seen enough yet to rebalance the market."
A recent rollback in output has helped copper prices rebound from six-year lows, bolstering confidence the industry is adjusting to slowing demand growth in China, which accounts for nearly half of global copper consumption.
But concerns persist ahead of Chinese third-quarter GDP data on Monday. China's economic growth is forecast to slow to 6.5 per cent in 2016 from an expected 6.8 per cent in 2015, a Reuters poll showed.
Recent weak Chinese data has fuelled expectations for further economic stimulus measures, including a boost to infrastructure spending that could help copper demand in the short term.
Aluminium was untraded at close but bids slid 0.1 per cent to $US1,572 a tonne.
Lead closed 0.9 per cent higher at $US1,811.50, tin eased 0.2 per cent to $US16,025 and nickel gained 0.4 per cent to $US10,590.
Zinc closed down 1.4 per cent at $US1,807, ending the week nearly two per cent lower. The metal gained 10 per cent last week, after Glencore said it would cut its zinc production by 500,000 tonnes.