RTRS: METALS-Copper ticks up but demand concerns linger
By Michael Taylor and Rebekah Curtis
LONDON, Oct 7 (Reuters) - Copper ticked higher on Wednesday in thin and volatile trade during Chinese holidays, and with gains looking fragile as an uncertain economic outlook stoked demand concerns.
Copper for three-month delivery MCU3 on the London Metal Exchange traded at $6,140 a tonne at 1419 GMT from $6,116 at the close on Tuesday, and versus a session low of $6,040.25.
Prices of the metal used in power and construction have doubled this year, driven by improving economic data, new investor cash and stockpiling by China. But sentiment is fragile as buying by China, the world's top copper consumer, has tailed off and OECD demand is still hampered by the economic slowdown.
"There's been no effective economic growth caused by the stimulus in the West," said John Meyer, analyst at Fairfax investment bank.
"We haven't seen any major infrastructure projects," he added. "The only positive stimulus we've really seen is in China and nearby regions."
Trade was thin and volatile due to a holiday in China where markets shut on Oct. 1 for the National Day and Autumn Festival holidays and only reopen on Friday.
For a graphic showing hourly volumes and directional trends across LME trading platforms for three-month futures on October 6, please click: here
A recent bout of more encouraging economic data has helped underpin prices, including data showing German manufacturing orders rose slightly more than expected in August on a boost from foreign demand.