(Reuters) - Copper was little changed on Monday as lingering concerns about poor physical demand in China and uncertainty on when Beijing would take actions to support encouraging caution by traders ahead of growth data from China this week.
Recent numbers from China have clouded expectations on whether it will take more steps to shore up growth, with an easing of the country's annual consumer price inflation pointing to ample room for policy easing, but a strong rebound in September exports suggesting policy changes may not be needed for now.
Benchmark copper on the London Metal Exchange (LME) was at $8,110 a tonne by 1022 GMT, slightly down from a last bid of $8,125 on Friday.
Traders were also distracted by LME week, the annual gathering of the industry in London.
"Copper trading is range bound at the moments as in the short term the situation is still uncertain and investors are waiting for the Chinese GDP data and for news from LME week," T-commodity consultant Gianclaudio Torlizzi said.
"But in a long-term perspective, I think the price is more interesting as if on one hand it's true that copper stocks are high, on the other hand we expect China to soon implement stimulus policies which should boost the economy and metals demand."
China, is the world's biggest buyer of copper and it consumed about 40 percent of global supply in 2011.
While China's September copper shipments rebounded 11 percent from a month earlier, analysts said this was due to bookings made late last year and did not reflect a revival in underlying demand. Compared to a year ago, September imports were also up just 3.8 percent - the slowest in 13 months.
PHYSICAL MARKETS
In Chinese physical markets, traders said spot sales were still hit by weak downstream demand.
"Our physical sales have been affected by consumers waiting for trading cues from this week's LME Week and GDP data, as well as the 18th Party Congress in November," said a Shanghai-based physical trader.
Metal industry participants often negotiate new contracts for the year at the LME Week event.
The Communist Party Congress on November 8 is China's most important political transition event, where the country's new leaders will be formally unveiled.
Softer demand in China and attractive prices on the LME compared with those quoted on the Shanghai Futures Exchange (SHFE) are pushing Chinese refiners to export more material, analysts said.
Jiangxi Copper Company Ltd (0358.HK) (600362.SS), the top copper producer in China, for example, plans to cut domestic sales and increase exports of the metal next year to take advantage of strong copper prices on the London Metal Exchange, a senior executive said.
Tin was at $21,100 from $21,315 while zinc, used to galvanize was at $1,921.50 from $1,935 Friday's close.
Battery material lead was at $2,131.50 from $2,131 and aluminum was at $1,981 from $1,995.
