- Cerro Matoso workers to strike from June 14 over pay
- Copper support seen at $4,550 as technicals darken - Triland
- Coming Up: Germany Markit/BME mfg PMI for May at 0755 GMT
(Adds comment, detail, updates price s)
London copper fell on Wednesday, taking a hit from a strong dollar after U.S. consumer spending blew past expectations and raised prospects of an interest rate rise soon, and a mixed outlook for China's manufacturing growth in May.
Activity in China's manufacturing sector unexpectedly expanded for the third straight month in May but growth remained weak as orders softened, suggesting the world's second-largest economy is still struggling to regain traction.
A private sector survey also showed that activity at China's factories shrank for a 15th straight month in May as new orders fell.
"Overall, China’s May PMI measures... were mixed, showing the challenges facing the economy. We expect the China government to continue implement supportive measures to protect growth and ensure economic recovery," said Argonaut Securities in a note.
Three-month copper on the London Metal Exchange CMCU3 had fallen 1.6 percent to $4,598 a tonne by 0307 GMT, extending a 0.5 percent drop from the previous session. It earlier hit $4,598 which was its weakest in four sessions, but still within its recent trading band of around $4,550 to $4,730.
Shanghai Futures Exchange copper SCFcv1 slipped 1.5 percent to 35,280 yuan ($5,352) a tonne having struck its lowest in a week.
"If we break current support at $4,550, another test could bring back some nervousness...One thing for sure is that copper needs something concrete before it can break any higher and the market is failing to provide that at present," broker Triland said.
Adding to headwinds for metals was a strong dollar and expectations that brightening economic picture in the U.S. could herald a rate hike as soon as June. [USD/]
U.S. consumer spending recorded its biggest increase in more than six years in April as households stepped up purchases of automobiles.
Worker's at Chinalco's Toromocho mine in Peru started a four-day strike on Tuesday to demand the reinstatement of a quarterly bonus, the union said. Toromocho produced 31,407 tonnes of copper in the first quarter and 5,500 tonnes of zinc, according to data from Peru's Energy and Mines Ministry.
In news that could support nickel prices, union workers at Colombia's Cerro Matoso mine, one of the world's largest producers of ferronickel, will begin an indefinite strike on June 14 in protest of work and pay conditions, the union president said.
A Chinese plan to curb worsening soil pollution by 2020 and stabilise and improve soil quality by 2030 published Tuesday may impact lead and zinc production. The government will continue to eliminate outdated heavy metal capacity under the plan.
Japanese manufacturing activity contracted at the fastest pace in more than three years in May as new orders slumped, a private survey showed on Wednesday, highlighting renewed weakness in the economy.
PRICES
Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1 ($1 = 6.5920 Chinese yuan renminbi)
