London - Copper was steady on Friday, hovering around the eight-month lows it hit on Thursday, but remained vulnerable to further declines with the release of US payroll figures later in the day.
A two-day holiday in top copper consumer China has also dampened demand for the metal.
Three-month copper on the London Metal Exchange was $7,439 from $7,440 at the close on Thursday, when it hit its lowest since Aug. 3 at $7,331.25 a tonne.
Prices were down more than 6 percent for the year.
A sell-off that began in mid-February has continued into early April, with the majority of the complex now trading at multi-month lows, Barclays Capital said in a research note.
“Neither macro nor fundamental trends have offered any persuasive reasons to counteract this price trend during this time period,” it said.
Concerns have been growing about the outlook for the US economic recovery ahead of the key non-farm payrolls report, due at 1230 GMT, after weaker-than-expected data this week on manufacturing activity and private sector hiring.
The jobs numbers are expected to show that employers added 200,000 jobs last month, below the 236,000 created in February, leaving the unemployment rate steady at 7.7 percent, according to a Reuters poll of economists
A better-than-expected number could be a double-edged sword for metals, because while it would signal good prospects for the economy and therefore demand for industrial materials, it would also push up the dollar.
A stronger dollar makes metals more expensive for holders of other currencies.
Analysts expect copper prices to start picking up in the current quarter, which is seasonally the strongest.
“As the second quarter gets underway, we should see prices start rallying. I think we will get back on track again, and we're staying faithful to the expectation that we will get a seasonal uptick,” Societe Generale analyst Robin Bhar said.
Chinese demand has been recovering, but traders were reluctant to take positions, at least until Monday when Chinese financial markets reopen.
Tin was at $22,800 from $22,750, while zinc was at $1,891 from $1,889. Lead was at $2,076 from $2,075, and aluminium was at $1,881 from $1,885. Nickel was at $16,092 from $16,100. - Reuters