Copper faces weekly loss

Reuters

Melbourne

London copper edged up on Friday, recovering from more than two-month lows plumbed in the previous session, but was still set for a second weekly drop due to a stronger dollar and concerns that China will hold back on more stimulus.

Copper prices have fallen back this week after a senior official said that China´s government will not use excessive investment, or high rates of credit growth to stimulate growth.  That, combined with a crackdown on speculators in China´s steel markets and a dollar revival, have doused a recovery in metals, said analyst Dan Morgan at UBS in Sydney.

"What we saw in Q1 was a big reflation in a lot of prices, and the backdrop doesn´t suggest that would continue for the rest of the year," Morgan said.  London Metal Exchange copper climbed half a percent to $4,634.50 a tonne by 0028 GMT, following a 2 percent loss in the prior session when it struck its weakest since Feb.