Base metals decline on weak China demand outlook

PHOTO

SINGAPORE - Industrial metals fell on Tuesday after top consumer China released a slew of weak economic data that raised concerns about demand from the world's second-largest economy.

Three-month copper on the London Metal Exchange (LME) fell 0.5% to $5,841 a tonne by 0344 GMT, while the most-traded copper contract on the Shanghai Futures Exchange (ShFE) declined 0.8% to 47,310 yuan ($6,674.76) a tonne.

China's industrial production grew at the weakest pace in 17-1/2 years last month and fixed-asset investment in January-August increased at a slightly lower rate than expected, data released on Monday showed.

LME nickel fell 1.9%, zinc declined 1.1%, lead dipped 0.4% and tin was 1.6% lower. In Shanghai, nickel dropped 2.9%, zinc lost 1% and lead declined 2.2% to a three-week low.

FUNDAMENTALS

* TRADE TALKS: Deputy-level U.S.-China trade talks are scheduled to start in Washington on Thursday, the U.S. Trade Representative's office said, paving the way for high-level talks in October aimed at resolving a bitter trade war.

* LEAD: Belgium's Nyrstar has temporarily reopened an old lead processing plant in the state of South Australia after receiving a permit from the state's environmental protection authority, it said on Monday.

* NICKEL PHILIPPINES: A nickel mining hub in the southern Philippines, which produces mostly high-grade material, has suspended extraction operations indefinitely as the regional government conducts an industry audit.

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin