Copper Falls, Halting Six-Session Rally, on Concern Metal Demand May Ease
Copper prices fell for the first time in seven sessions on speculation that a fragile economy will limit demand for the metal used in homes, cars and appliances.
U.S. consumer confidence fell to a five-month low in July, indicating a weak labor market will limit the economy’s recovery. Copper has dropped 4.2 percent this year on concern the global recovery would falter.
“I’m really surprised by the recent rally for copper,” said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. “People need to understand that if you don’t improve consumer spending and unemployment, the economy is not going to be so strong.”
Copper futures for September delivery fell 1.65 cents, or 0.5 percent, to $3.2065 a pound on the Comex in New York. The metal gained 10 percent in the previous six sessions as inventories declined.
Stockpiles monitored by the London Metal Exchange have dropped 8.3 percent in July, heading for the biggest slide since June 2009.
“Even though there have been some changes in sentiment, the economic conditions are still weak,” Steve Lehman, a senior portfolio manager at Federated Investors in Pittsburgh, said in an interview last week. “I’m pessimistic about the intermediate prospects for global growth and industrial commodities.”
Copper for delivery in three months slumped $90, or 1.3 percent, to $7,059 a metric ton ($3.20 a pound) on the LME.
Aluminum was unchanged, while nickel, tin, lead and zinc fell.
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net.
Rate this Page