Copper have closed lower on the London Metal Exchange (LME) after a weaker-than-expected report on Chinese manufacturing dealt a blow to investor confidence.
At the PM kerb close on Thursday, LME three-month copper was down 0.4 per cent at $US7,155 a metric ton.
Copper prices fell after a Chinese manufacturing data raised doubts over the country's demand for industrial metals. China is the world's biggest metals consumer, accounting for about 40 per cent of global copper demand each year.
HSBC's preliminary manufacturing purchasing managers index slid to a seven-month low at 48.3 in February from a final score of 49.5 in January. A score below 50 points to a contraction in factory activity.
"There is considerable uncertainty over the potential strength of Chinese industrial demand for base metals over the coming weeks and months," said Nic Brown, head of commodities research at Natixis.
"After 2013, in which a very weak start to the year gradually gave way to increasingly strong demand during the latter part of the year, the market will remain susceptible to potential price volatility as each new data point emerges from China."
Aluminium held up the best of the base metals, closing 0.2 per cent higher at $US1,772 a ton. The metal has found support in recent days from news on Tuesday that aluminium giant Alcoa Inc plans to close a large aluminium smelter in Australia, cutting total capacity by 4.8 per cent.
