Shanghai copper slips on China concerns
Shanghai copper has slipped on lingering worries over China's economy ahead of fresh factory data later in the week, but is set for a small monthly gain as a lull in demand over the summer petered out.
The relative health of domestic Chinese prices in the face of losses in London bodes well for import-driven demand over the next few months, said analyst Daniel Hynes of ANZ in Sydney.
"But it does feel like this little short-covering rally is fragile, so I'm a bit hesitant to call a bottom just yet. If we do see some positive economic data coming through, then that could be the impetus copper needs to gain some length."
Shanghai Futures Exchange copper slipped 0.2 per cent to 39,310 yuan ($US6,163) a tonne. Prices hit six-year lows at 37,310 on August 7, but withstood last week's correction, suggesting they have found a floor.
ShFE copper was set for a 2.7 per cent advance in August, the biggest monthly gain since March.
ShFE zinc gained 0.6 per cent on expectations that shrinking mine supply would tighten the refined market.
The London Metal Exchange was closed for a bank holiday weekend.
ME copper had closed August down 1.8 per cent, the fourth monthly decline in a row. Prices have shed almost a fifth this year.
Global financial markets looked set for another rough week on Monday, with stocks and commodities falling ahead of data that could give clues on when the US will raise interest rates and surveys which are likely to point to further weakness in China.
Skittish markets are awaiting factory and service sector activity surveys from the world's second-second largest economy on Tuesday.
In a bleak signal for metals demand, China's slowing economy has taken its toll on the first-half earnings of major construction machinery makers Zoomlion Heavy Industry Science and Technology Co Ltd and Sany Heavy Industry Co Ltd. But China's central bank is highly likely to ease monetary policy again by the end of this year, according to economists surveyed by Reuters, as it seeks to support a rapidly cooling economy and calm financial markets.