(Updates prices) By Peter Hobson LONDON, Oct 31 (Reuters) - Copper prices fell on Mondayas rising COVID-19 cases and weaker-than-expected manufacturingdata in top consumer China raised concerns over demand weakness. COVID restrictions are affecting factories in numerousChinese cities and the yuan fell to its weakest since 2007,making dollar-priced metals costlier for local buyers. Benchmark copper on the London Metal Exchange (LME)was down 1.5% at $7,439.50 a tonne at 1655 GMT. It has lostaround 1.6% in October, its seventh consecutive monthly fall.
Prices of the metal used in the power and constructionindustries have fallen more than 30% from their March peak asChinese economic growth has faltered and Europe and the UnitedStates look likely to enter recessions.
"Sentiment towards China is very bearish at the moment. Youcan't rule out that copper will dip below $7,000, but thatshould be a buying opportunity," said Julius Baer analystCarsten Menke, pointing to expectations of tight copper supplyin the coming years.
China's central bank again said it will step up creditsupport for the economy and keep the yuan steady.
However, investors remain unsettled by the appointment at aCommunist Party Congress this month of loyalists to President XiJinping and a stepping up of zero-COVID policies.
Elsewhere in the world, the U.S. Federal Reserve is expectedto raise interest rates by another 75 basis points this week,stifling economic growth in an attempt to bring down rampantinflation. The Bank of England is also poised for a bumper rateincrease and European inflation surged past expectations yetagain, reaching a record high that suggests more rate risescould follow.
LME aluminium was up 0.4% at $2,220.50 a tonne, zinc fell 4.7% to $2,688.50, nickel was 1.6% lower at$21,785, lead slipped 1.9% to $1,949 and tin wasdown 2.8% at $17,590. (Reporting by Peter Hobson; Editing by Devika SyamnathAdditional reporting by Mai Nguyen in HanoiEditing by David Goodman and Devika Syamnath)
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