Surveys showed that China’s factory activity in January grew at the slowest pace in months, hit by a wave of domestic coronavirus infections and falling export orders amid a surging global pandemic and rising costs.

Copper futures fell 0.4% to $3.531 per pound (or $7,784.56 per tonne) on the Comex by noon EST, near a three-week low. Price of the metal has fallen more than 5% since hitting an eight-year high last month.

Moreover, a stronger US dollar also prompted funds to cut bets on higher prices, though losses were capped by historically low inventories.

“There was a fair amount of profit-taking on long positions earlier, the dollar is going up and doubts about Chinese demand are creeping in,” one metals trader told Reuters. “But the plus is inventories.”

China’s central bank on Friday dismissed rumours that it had raised the interest rate on its standing loan facility, easing worries about tighter credit and providing some price support.