Benchmark copper on the London Metal Exchange (LME) was up 0.8% at $9,410 a tonne at 1715 GMT but down more than 8% in June.
The metal was still up around 7% for the April-June quarter, however – the fifth consecutive quarter of rising prices – after reaching an all-time peak of $10,747.50 on May 10.
“A lot of funds have liquidated positions,” sapping momentum, said independent analyst Robin Bhar.
He said prices would be likely to rise again when the summer – traditionally a period of slow demand from industry – ends.
DEMAND: Many analysts say rising demand for copper in infrastructure and electrification will cause shortages and higher prices in the coming years.
FACTORIES: Growth in China’s factory activity dipped to a four-month low in June. Other data showed that in May, Japan’s industrial output fell by the most in a year and South Korea’s dipped from April.
Chile’s manufacturing output rose 8.9% year-on-year in May and its copper output dipped 0.4%, to 493,420 tonnes.
DOLLAR: The dollar was on track for its biggest monthly rise since November 2016 after a hawkish shift in the U.S. Federal Reserve’s rates outlook. This hurt metals by making them more expensive for buyers with other currencies.
MARKETS: Global shares retreated from recent highs as Asian markets grew jittery about a resurgence of COVID-19 cases.
CHINA: China is selling from state reserves of copper, aluminium and zinc as part of its pledge to control a surge in commodities prices.
FORECAST: Morgan Stanley forecast copper would average a little above $9,000 a tonne for the rest of the year.
PRICES: Benchmark aluminium was 1.1% lower at $2,522.50 a tonne, zinc rose 0.9% to $2,978, nickel was 0.8% lower at $18,220, lead was down 1.4% at $2,272 and tin fell 0.9% to $31,070.
All were on track for quarterly gains and all except zinc were set for monthly gains.
