India copper falls on weak Chinese demand

MUMBAI, July 4 (Reuters) - Indian copper futures fell over two percent on Friday as slackening Chinese demand weighed on sentiment, analysts said.

Copper inventories in China, an indication of demand in the world's largest metal consumer, rose 12 percent in the week ended Thursday to 36,175 tonnes.

At 6.39 p.m., the benchmark August copper MCCQ8 on the Multi Commodity Exchange of India (MCX) was down 1.77 percent at 368.70 rupees per kg.

"Copper is down because demand from China is not showing signs of recovery, the inventories are also up," said Navneet Damani, an analyst with Anand Rathi Commodities Pvt Ltd.

Copper, mainly used in the power and construction sector, was down as high international prices discouraged Chinese buyers from entering the market.

Chinese imports are seen slowing in July as well as copper consumption tends to weaken during the summer with less demand for Chinese goods from other economies. See [ID:nHKG353583]

Prices also fell as the nationwide strike in Peru where labourers demanded better benefits, waned, analysts said.

LEAD,ZINC

Lead prices continued to suffer badly as inventories continued to climb, analysts said.