Copper Drops From 12-Week High as U.S. Durable Orders Unexpectedly Decline

Copper declined from the highest level in 12 weeks as an unexpected drop in orders for durable goods in the U.S. raised concerns about the strength of economic recovery and the outlook for metals demand.

Copper for delivery in three months declined as much as 0.6 percent to $7,126 a metric ton on the London Metal Exchange and was at $7,161 at 11:43 a.m. in Shanghai. The metal ended yesterday at $7,170 a ton, the highest close since April 30. Lead lost 0.9 percent to $2,000 a ton.

Orders for durable goods in the U.S. fell 1 percent in June from a month ago, while economists predicted an increase for the sixth time in seven months. The U.S. is the second-largest consumer of copper, used in buildings and appliances.

“The second monthly decline in U.S. durable orders affirmed a slowdown in manufacturing expansion,” Tan Wentao, an analyst at HNA Topwin Futures Co., said from Shanghai today.

Copper for October delivery in Shanghai fell 0.2 percent to 56,140 yuan ($8,283) a ton at 11:30 a.m. local-time break.

“Local consumption is still relatively weak, as indicated by fabricators’ sluggish buying and imports data,” said Lai Qiwen, an analyst at Guantong Futures. Refined-copper imports by China fell for a third month in June.

Aluminum in London decreased 0.2 percent to $2,065 a ton, zinc and nickel were little changed at $1,953 and $20,390 a ton, respectively. Tin hadn’t traded as of 11:41 a.m. in Singapore.

--Li Xiaowei, Helen Sun. Editors: Matthew Oakley, Jarrett Banks.

To contact the Bloomberg News staff on this story: Li Xiaowei in Shanghai at Xli12@bloomberg.net

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