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Copper Tumbles in Shanghai on U.S. Demand Concern |
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Copper prices fell the most in more than two months in Shanghai amid speculation that an economic slowdown in the U.S., the second-largest consumer of the metal, will reduce demand. Zinc and aluminum futures also dropped.
Growth in U.S. service industries slowed more than forecast in July, and U.S. employers added fewer jobs last month than projected, reports showed Aug. 3. Stockpiles of copper, which sometimes moves in tandem with economic growth, also increased last week as summer holidays and maintenance hurt demand.
"At a time of seasonally slow demand, the market will move on anything, and this includes rising warehouse inventories and weak economic data," Wang Feng, an analyst at Everbright Securities Co., said today.
Copper for October delivery on the Shanghai Futures Exchange fell as much as 2,790 yuan, or 4.1 percent, to 65,160 yuan ($8,611) a metric ton from the previous close, the biggest intraday loss since May 25. The contract traded at 65,830 yuan a ton, down 3.1 percent, at the end of morning trading.
Metal for immediate delivery in Changjiang, Shanghai's biggest cash market, fell as much as 3 percent to 64,780 yuan a ton today.
London Metal Exchange copper for delivery in three months rose 0.3 percent to $7,695 a ton at 11:36 a.m. Shanghai time, after falling 2.6 percent in the previous session.
Global stockpiles of the metal monitored by the LME rose 2.2 percent to 105,650 tons on Aug. 3, the highest since July 5. Shanghai stockpiles gained 1.6 percent to 91,563 tons last week, the local exchange said.
Still, labor disputes are threatening supply from Latin America. Striking workers at Southern Copper Corp., the world's fifth-largest producer of the metal, disrupted output at three mines in Mexico for a fifth day, a labor union said August 3. back to the News |
