Base metals on the London Metal Exchange have closed mostly higher but are bound within recent ranges as investors wait for some key economic data from top consumer, China.
LME three month copper and tin were the exceptions, closing on Monday 0.4% and 0.3% lower from Friday's finish, at USD 6,650 per tonne and USD 22,800 per tonne respectively. LME three month aluminium closed 1.5% higher on the day at USD 1,786 per tonne.
China, which consumes 40% of the world's copper is slated to report its Purchasing Managers Index on Tuesday, giving the market a snapshot of the manufacturing sector in the world's second largest economy.
Copper prices are down more than 10% this year amid worries that a potential slowdown in China will further curb growth of the country's demand. Prices rallied Friday, however, after a top Chinese official hinted the country may launch stimulus measures to boost economic growth.
Bank of America Merrill Lynch said that with immediate concerns over China's economy subsiding somewhat, sustained supply disruptions and a copper market that is positioned quite short, we see the risk of a short covering rally near term.
