June 5 (Reuters) - Copper prices in London rose slightly on Wednesday, but were still below a key level of $10,000 a metric ton due to weak physical demand in top consumer China.
Three-month copper on the London Metal Exchange was up 0.2% at $9,966.50 per metric ton by 0522 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange dropped 1.9% to 80,500 yuan ($11,110.34) a ton.
Copper prices surged to record highs above $11,000 in late May partly due to funds betting on the metal's use in the green energy sectors and a potential shortage, but the high and volatile prices put off some physical copper users.
"With stretched speculative positions, there is always risks of profit booking amid negative news flow," said ANZ analyst Soni Kumari, referring to rising exchange inventories, falling premiums and weak manufacturing data in China.
"We acknowledge that supply disruption news are still coming, but those risks are largely priced in and the suspension of operations at Taseko Mines' Gibraltar copper mine in Canada due to a strike by union workers is expected to be short lived."
Copper stocks in warehouses tracked by SHFE were last at
321,695 tons, the highest since April 2020, while LME
inventories hit 118,950 tons, the highest since April 24.
The usual premium to import copper into China turned
negative since mid-May and fell to as low as $20-a-ton discount,
although the discount has tightened lately.
China, the world's top metals consumer, reported unexpectedly softer manufacturing activity in May.
LME aluminium dropped 0.8% to $2,641.50 a ton, nickel fell 1% to $18,885, zinc shed 0.6% to $2,918.50, tin eased 0.1% to $31,735, and lead dipped 0.1% to $2,241.
SHFE aluminium eased 0.4% to 21,205 yuan a ton, nickel fell 2.1% to 143,340 yuan, lead declined 0.9% to 18,820 yuan, tin dropped 2.2% to 261,420 yuan and zinc edged down 0.6% to 24,160 yuan.
For the top stories in metals and other news, click or ($1 = 7.2455 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu and Sonia Cheema)