(02/04) Base metals were lower on the London Metal Exchange in Asia Friday, with tepid China PMI readings failing to spark any buying interest. Volum

April 02, 2011

Base metals continued to trend to the downside in Friday early morning business, still pressured by concerns over future demand levels and wider macroeconomic and geopolitical strife.

Bellwether copper was last trading at $9,359.75 per tonne, down $70.25 from the Thursday close, with the red metal retracing amid worries of consumption levels from Asia.

"It will be interesting to see if China will come back as a buyer during the next quarter," broker Triland Metals said. "So far there is no sign for this."

Conflicting opinions over the extent of future Chinese and Japanese metals demand is continuing to pressure the base metals complex, with disappointing data released from Beijing overnight exacerbating these concerns.

China's official manufacturing PMI for March came in at 53.4, rising from 52.2 in the previous month but below a forecast of 54.6. An alternate PMI for China compiled by HSBC came in at 51.8, falling from 52.5 in February.

Elsewhere, in the latest chapter of the lingering sovereign debt saga in Europe, yesterday a 24 billion euro ($34.1 billion) black hole was found in the Irish banking sector following the release of stress test results there.