Copper retreats to US$3.781/lb on lower Chinese GDP growth estimate

Copper closed Tuesday at US$3.781/lb cash on the London Metal Exchange, down from the previous day's US$3.856/lb in reaction to the lowering of China's 2012 GDP growth estimate to 7.5%.

The news followed the release of China's non-manufacturing index PMI which fell to 48.4 in February from 52.9 the previous month suggesting that China is indeed slowing down more than expected.

"Most of the base metals have started to retreat from their recent rebounds," analyst William Adams from FastMarkets said.

"Copper is easing, but has only just dipped below the US$8,500/t area and still seems to be holding within the sideways trading range. However a move down below US$8,400/t may well start to see downward momentum gather pace," Adams added.

With Tuesday's close, copper is averaging US$3.854/lb in March and US$3.745/lb so far this year.

In precious metals, gold closed Tuesday at US$1,669.00/oz on the London Bullion Market, easing further from the previous day's US$1,705.00/oz and falling below the US$1,700.00/oz mark for the first time this year.

China's lower GDP growth estimate also weighed on precious metals, according to UK-based investment bank Barclays Capital.

Silver closed Tuesday at US$33.22/oz, also easing from the previous session's US$34.18/oz.