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LONDON (Dow Jones) - Copper futures edged higher in a quiet session on Monday, but the outlook for China's manufacturing sector was bleak
Views:  Date:2015-06-01 09:34:44

NEW YORK (Reuters) - London copper edged up 5% in a quiet session on Monday, the Dow Jones Industrial Average reported Monday. China's data released by the market concerns about China's demand, so that copper prices continue to pressure.


China's official manufacturing purchasing managers' index (PMI) rose only slightly to 50.2 in May, in line with the survey estimates.


HSBC China manufacturing PMI in May, the final value increased slightly, but for the third consecutive month below the glory line, the new export orders hit a nearly two-year low, the first sub-output during the year shrinking, are showing the current manufacturing industry is still under pressure , The downward pressure on the economy unabated, to be more relaxed policy boost.


"China is not in a good position and you can not expect a big boost in demand," said Dominic Schnider, an analyst at UBS Wealth Management in Hong Kong.


Schnider believes that the support of copper prices may still come from the supply of mines, especially in Chile. "In the case of a supply growth of only 2%, the market will go up further," he said.


As a result of the floods, the world's largest copper producer - Chile in April copper production in March compared with 0.7%.


On the downside, LME copper for three months rose 0.4% to $ 6,038.5 a tonne, down 1.3% from the previous day. Copper fell 5% last month.


August copper futures contract on the Shanghai Futures Exchange fell 1 percent to 43,650 yuan per ton.


Hedge funds and fund managers cut copper futures and options on the New York Mercantile Exchange (COMEX) for the week ended May 26, according to data from the Commodity Futures Trading Commission (CFTC).


Asian aluminum premiums in May continued downward trend, due to a large number of China's export growth has been oversupplied in the region suffered more pressure. In addition, the two involved in price negotiations informed sources said Friday, the two major aluminum producers to Japanese buyers to provide the 7-9 month of primary aluminum premium price of 130 US dollars per ton or 160 US dollars, respectively, compared with the previous quarter fell 66% and 58% respectively.

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