Copper price lowest in 3 months on weak economic data out of China

Copper for delivery in September on the Comex market in New York touched $3.71 per pound ($8,162 per tonne), down 1.45% compared to Thursday’s closing, the lowest since May.

“Copper and industrial metals in general have struggled putting up a defense against a string of weak economic data out of China this week,” said Ole Hansen, head of commodities strategy at Saxo Bank.

China’s new bank loans tumbled in July, data showed on Friday, with annual growth of outstanding total social financing (TSF) – a broad measure of credit and liquidity in the economy – slowing to 8.9%. TSF slumped to 528.2 billion yuan ($73.04 billion) from 4.22 trillion yuan in June, missing analyst estimates.

“Subdued financing to the real economy is likely to constrain metal demand from traditional sources,” said WisdomTree commodity strategist Nitesh Shah.

Concern over the health of the property sector has also resurfaced, with a possible debt restructuring by Country Garden, China’s top private property developer.

“While China has announced several measures of support for the real estate sector in recent weeks, the lack of a large, momentous policy announcement has many disappointed,” Shah said.