Copper falls as disappointing China data and Mideast impasse weigh

Elsewhere, Brent crude LCOc1 increased as the U.S.-Iran truce expired and negotiations to end the war remained at an impasse. Pricey crude could raise inflationary pressure and force higher interest rates, dampening economic activity and weighing on growth-dependent commodities like copper.

Among LME metals, aluminium CMAL3 dipped 0.2%, zinc CMZN3 lost 0.74%, lead CMPB3 dipped 0.11%, nickel CMNI3 dipped 0.17% and tin CMSN3 dipped 0.3%.

Among SHFE metals, aluminium SAFcv1 lost 0.38%, zinc SZNcv1 lost 0.95%, lead SPBcv1 was steady, nickel SNIcv1 was steady and tin SSNcv1 dropped 1.59%.

Disappointing economic indicators from China brought attention back to the demand outlook, after copper prices touched a six-month high on Monday.

"Weaker-than-expected economic data in China weighed on sentiment across the base metals sector," Daniel Hynes, senior commodity strategist at ANZ, said in a note.

China's factory output grew 4.5% in July from a year earlier, data from the National Bureau of Statistics showed on Monday, declining from June and missing expectations.

Fixed-asset investment in the country, which includes investment in key copper-consuming sectors like real estate and infrastructure, contracted 6.7% in the first seven months of 2026, compared with an expected 6% decline.

China's demand for imported copper has already been weighed down by higher prices. The Yangshan copper premium SMM-CUYP-CN fell to $85 a ton on Monday, its lowest since July 10, though the premium remained nearly twice as high as at the start of the year.

Copper fell off its previous day's highs on Tuesday as the market digested a string of disappointing economic data from key consumers, China, and the U.S.-Iran truce expired without a longer-term peace deal.