BLBG : Copper Drops on Speculation China’s Imports Fell in September
Copper fell on speculation a report tomorrow may show imports by China, the world’s largest user of the metal, dropped for a third month in September.
Investors are wary that the approaching year-end slow season may not support a rise in prices this month, according to Tianjin-based First Futures Brokerage Co. Copper reached a three-week high in London last week as rising equity markets and a weaker dollar boosted investor demand for commodities.
“Commodities have been driving each other higher, the momentum driven by a weaker dollar and some positive economic data,” First Futures’ chief analyst Liang Lijuan, said today from Beijing. “While demand in China is relatively stable, it may not be enough to justify such high prices.”
London Metal Exchange copper for delivery in three months fell as much as 0.7 percent to $6,235 a metric ton and was at $6,255 a ton at 3:01 p.m. in Singapore, more than doubling this year. The metal reached $6,363 on Oct. 8, the highest price since Sept. 18.
Copper for January delivery on the Shanghai Futures Exchange dropped as much as 0.8 percent to 48,620 yuan ($7,124) a ton, and ended the day at 48,890 yuan. December-delivery copper on the Comex division of the New York Mercantile Exchange was little changed at $2.8520 a pound.
China Imports
China’s purchases of copper and related products fell to 325,098 tons in August, down 20 percent from a month earlier, as overseas prices gained. China is expected to release the September data tomorrow.
“China is critical to what has gone on in the market in 2009,” Richard Adkerson, chief executive officer of Freeport- McMoRan Copper & Gold Inc., said in an interview. “There are positive signs in the economic situation in the western world, in the financial markets in particular, but that’s yet to translate into fundamental demand.”
Among other LME-traded metals, aluminum fell 0.8 percent to $1,930.75 a ton, zinc slid 1.3 percent to $2,067 a ton, and lead lost 0.7 percent to $2,280 a ton. Nickel was little changed at $18,780 a ton, while tin added 1.2 percent to $14,850 a ton as of 3:03 p.m. in Singapore.
