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Copper futures decline as China growth concerns weigh

Published 05/29/2013, 05:22 AM
Updated 05/29/2013, 05:22 AM
Investing.com - Copper futures were lower on Wednesday, after the International Monetary Fund cut its estimate for China's economic growth for this year and the next, stocking concerns over a slowdown in demand from the world’s largest copper consumer.

On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.285 a pound during European morning trade, down 0.9% on the day.

New York-traded copper prices fell by as much as 1.1% earlier in the session to hit a daily low of USD3.277 a pound.

The IMF lowered its growth estimate for the Chinese economy in 2013 and 2014 to 7.75%, down from a previous estimate of 8% and 8.2% respectively.

Copper traders are now looking ahead to the release of key Chinese data slated for later in the week.

The next slice of Chinese economic data to come out will be the official purchasing managers' index due on Saturday.

Data last week showed that manufacturing activity in China contracted for the first time in seven months in May.

China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere on the Comex, gold for August delivery added 0.45% to trade at USD1,385.95 a troy ounce, while silver for July delivery was little changed to trade at USD22.20 a troy ounce.

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