Copper declined in London, poised for the biggest weekly drop in 16 months as inventories swelled to the highest level since 2003 and the outlook for the global economy weighed down metals prices. Aluminum, zinc, nickel and lead also dropped.
Copper for delivery in three months lost as much as 1.7 percent to $6,966.75 a metric ton on the London Metal Exchange, before trading at $6,970 by 9:41 a.m. Shanghai time, putting on course for a weekly decline of 6 percent. The metal retreated to $6,800 yesterday, the lowest since October 2011, before paring the drop at the close. Metal for delivery in August on the Shanghai Futures Exchange was little changed at 50,560 yuan ($8,182) a ton, after falling to a daily lower limit yesterday.
Stockpiles monitored by the London Metal Exchange rose 0.6 percent to 612,350 tons, the highest since Sept. 8, 2003, bourse data showed. Canceled warrants, or orders to remove the metal from warehouses, fell for a fourth day to 148,575 tons, the lowest since April 8.
“It’s still too early to say copper has found support at the current level,” Xiong Dabiao, an analyst at Minmetals Futures Co., said by phone from Shanghai. “We need to watch out for any negative news development from either Europe or China.”
Copper for delivery in July on the Comex fell 1.5 percent to $3.1695 per pound.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at firstname.lastname@example.org