Copper prices fall amid fears over Chinese demand

Copper prices fell on Monday amid concerns about demand in China, the main consumer, expectations of a more balanced market in the coming months and a stronger dollar.

At 1042 GMT, three-month copper on the London Metal Exchange (LME) was down 0.3% at $ 9,620 a tonne. Metal prices have traded in a tight $ 400 range in recent weeks.

“We must be cautious, China’s real estate slowdown is worrying, it is dragging base metals”Said Dan Smith, managing director of consulting firm Commodity Market Analytics.

“Copper inventories are low, but the mining side is starting to rise. We go from a market in deficit to one that will be in equilibrium for the next three to six months”He added.

China’s real estate market, which accounts for a quarter of Gross Domestic Product by some metrics, has slowed dramatically since May, with confidence falling amid a growing liquidity crisis.

The dollar was strong, making raw materials more expensive for holders of other currencies.

LME-registered warehouse copper stocks total 86,525 tonnes, roughly a third of the level at the end of August.