Copper Declines for Fourth Day Before U.S. Production Figures
Copper fell for a fourth session on London before a report predicted to show weakening industrial production in the U.S., the world’s second-biggest consumer of the metal.
Output rose 0.3 percent in December after a 1.1 percent gain the month before, according to a survey of economists. Prices also declined after the World Bank lowered its forecast for global economic growth in 2013 and copper stockpiles tracked by the London Metal Exchange expanded to the highest level in almost a year.
“Macro events continue to dominate headlines,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said in a report today. “Fairly decent economic indicators for December are being countered by persistent concerns over the U.S. debt ceiling, while OECD growth rates remain painfully slow.”
Copper for delivery in three months slid 0.3 percent to $7,973 a metric ton by 10:56 a.m. on the LME. Copper for delivery in March fell 0.4 percent to $3.624 a pound on the Comex in New York.
The U.S. production figures are due at 2:15 p.m. London time. The global economy will expand 2.4 percent this year, below June’s 3 percent forecast, the World Bank said.
President Barack Obama and congressional Republicans appear headed toward a confrontation over the $16.4 trillion debt limit, deficit reduction and keeping the government running that will come to a head over the next six to eight weeks.
“The market is anticipating some days and weeks of nervousness as negotiations take place in the U.S. regarding the debt ceiling and Republicans’ requests or demands for some kind of cuts in spending,” Steve Hardcastle, head of client services for industrial commodities at Sucden Financial Ltd. in London, said by phone.
Copper stockpiles monitored by the LME rose 4.8 percent to 349,275 tons, the highest level since Jan. 19, daily exchange figures showed. Metal totaling 18,650 tons was delivered into New Orleans warehouses. Orders to remove copper from inventories dropped for a seventh session in eight to 56,450 tons.
Lead, zinc, nickel, aluminum and tin fell in London.
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