METALS-Copper retreats from 2-week high as China factory activity slows
Updates prices, adds details and quotes
By Mai Nguyen
Sept 1 (Reuters) - Copper prices slipped from a two-week high on Wednesday after data signalled tepid factory activity in China, stoking trader concerns over demand in the world's biggest consuming market.
Copper is widely used in manufacturing and China accounts for around half of global copper consumption.
Three-month copper on the London Metal Exchange CMCU3 was down 1.1% at $9,420 a tonne, as of 0552 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange SCFcv1 declined 1.2% to 69,330 yuan ($10,728.05) a tonne.
In the previous session, both contracts had scaled to their highest levels since Aug. 16.
China's factory activity slipped into contraction in August for the first time in nearly 1-1/2 years as COVID-19 containment measures, supply bottlenecks and high raw material prices weighed on output. nZUN0037RQ
Manufacturing activity in August in other Asian major economies of Japan, South Korea and Taiwan also expanded at a slower rate on chip shortages and factory shutdowns. nL4N2Q30DT
"Copper eased ... after China's Caixin manufacturing data fell," said commodities broker Anna Stablum of Marex Spectron in a note.
"The fierce buying from China seen when prices traded around and below $9,000 has dried up as the arbitrage has mainly closed and stock draws have contracted," she said.
Yangshan copper premium SMM-CUYP-CN fell to $99 a tonne, its lowest since Aug. 18, indicating weakening demand to import the metal into China.
* LME nickel CMNI3 rose 0.1% to $19,570 a tonne and ShFE nickel SNIcv1 increased 0.5% to 148,920 yuan a tonne.
* LME aluminium CMAL3 dipped 0.4% to $2,706.50 a tonne, tin CMSN3 declined 0.7% to $33,680 yuan a tonne, while lead CMPB3 rose 0.2% to $2,260.50 a tonne.
* ShFE aluminium SAFcv1 was down 1% to 21,120 yuan a tonne, lead SPBcv1 fell 1.1% to 14,900 yuan a tonne and zinc SZNcv1 decreased 0.8% to 22,240 yuan a tonne.
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($1 = 6.4625 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Uttaresh.V and Sherry Jacob-Phillips)
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