Copper prices fall on China manufacturing data

Copper prices fell to a multi-week low in New York Tuesday as investors and analysts worried about demand growth after a Chinese purchasing managers’ index showed that while factory activity remained in expansion in China in April, its rate of expansion slowed, hinting that China’s economy is cooling.

An index reading of 55.4 in April was the lowest in six months and fell from 57 in March, with any reading above 50 indicating expansion.

Copper was down 10 cents to 3.19 per pound in New York in afternoon trade, while three-month copper lost 5.1 percent to $7,050 per tonne on the London Metal Exchange.

London prices for aluminium, lead, nickel, tin and zinc also fell on the session.

Precious metals prices were also lower with sentiment dented over worries that the bailout for Greece will not be enough to help it out of its debt crisis and will not stop debt issues from crippling the economies of other European nations.

Gold was $11.70 lower to $1,171.60 per troy ounce in afternoon trade in New York, while silver fell to $17.95 per troy ounce.

Platinum and palladium, both used in the manufacture of air pollution control devices for motor vehicles, fell even more with July platinum down $41.80 to $1,687.10 per troy ounce while June palladium dropped $30.20 to $517.20 per troy ounce.