OREANDA-NEWS. February 17, 2015. Copper retreated on Monday from a three-week high hit on Friday as volumes shrank ahead of the Lunar New Year holiday in China and traders worried about the outlook for demand from the world's top metals consumer.

Three-month copper on the London Metal Exchange (LME) was at \\$5,715.50 a tonne at 1111 GMT, down 0.3 percent. The metal, used in power and construction, touched a three-week high of \\$5,793.50 on Friday.

Trading volumes have tailed off as market participants in China wind down for this week's Lunar New Year holiday, with markets closed from Feb. 18. China accounts for about 40 percent of global refined copper demand.

"People are concerned about the extent to which Chinese growth could underperform ... and are anticipating that the growth model based on consumer demand will lead to lower economic growth rates and slower demand for raw materials," said Nic Brown, head of commodities research at Natixis.

"The downside risks to growth could encourage authorities to step in to stimulate the economy." Policy insiders say China will cut rates, boost liquidity and tolerate some currency weakness to ensure the economy grows about 7 percent this year as the authorities try to head off deflation and keep employment strong enough to push on with reforms.

Supply concerns were also keeping traders cautious. Copper output from BHP Billiton's Olympic Dam mine in Australia will be cut by 60,000-70,000 tonnes this year, due to repair work, it said.

The euro's strength against the dollar was helping keep any copper price falls in check as it makes commodities priced in the US currency cheaper for holders of other currencies.

The euro edged up ahead of a meeting of euro zone finance ministers that investors hope will find common ground to support Greece beyond its bailout programme and keep it inside the currency bloc.

Hedge funds and money managers increased their bearish position in copper contracts during the week to Feb. 10, US Commodity Futures Trading Commission (CFTC) data showed on Friday.

In other metals, Indonesia's top tin miner PT Timah has suspended all new sales until benchmark prices of the solder material rise above at least \\$20,000 per tonne, an official at the state-owned firm said on Saturday.