Copper prices fell on Tuesday as the US dollar strengthened and the outlook for demand worsened due to weak growth in China.
Copper for March delivery fell 0.1% to $3.80 a pound, or $8,360 a metric ton, on Comex in New York.
Activity in China's manufacturing sector contracted at a sharper pace in December as a surge in the coronavirus pandemic disrupted production and weighed on demand, a purchasing managers' index survey showed.
Giles Coghlan, an analyst at brokerage HYCM, said the resumption of subway use in China's major cities sends "a strong signal that China is waking up from its coronavirus induced slumber".
"However, this is not being felt in the copper market as there are fears that both the US and Europe are heading for recession and the latest Chinese PMI data show a further decline," he added.
The decline in Chinese demand for imported copper can be seen in Yangshan's price differential. Yangshan copper's price spread fell to $37.50 a tonne on December 30, down more than 70 per cent since mid-October.
