Copper futures slipped on Friday amidst preoccupations that China will enhance monetary tightening after manufacturing picked up its pace for the first time since late last year, Bloomberg reports.
China - who holds the world's hottest, most rapidly growing economy - also is the globe's top user of metal, largely because copper is used in wires, pipes and other key industrial materials..
"The data is a double-edged sword," Yan Lei, a Guoyuan Securities analyst, told the news service. "It shows the economy is still growing and at the same time it reminds investors about China’s tightening policy. It’s a good excuse to take some money off the table ahead of the holidays."
Shortly after 3 p.m. on Friday, copper futures were down 1.30 percent, a $5.60 cent slide to $425.15 per troy ounce.
The People's Bank of China is poised to again raise interest rates within the coming days, according to Citigroup.
"China may grow at a slower pace but there will still be growth and this will keep demand for metals robust," Zhang Yan, a Jin Yuan Futures trader, told the news service.
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