Copper Drops First Time in Six Days on Surplus, China Concerns
Copper declined for the first time in six days after manufacturing in China, the biggest user, weakened and Goldman Sachs Group Inc. said a global surplus may almost double in two years. Aluminum, lead and nickel dropped.
Metal for delivery in three months fell as much as 1 percent, the most since July 17, to $6,984.25 a metric ton on the London Metal Exchange and was at $7,018.50 by 11:17 a.m. in Shanghai. Nickel dropped 1 percent to $14,230 a ton and aluminum declined 0.5 percent to $1,841 a ton.
Goldman said the copper surplus may rise to 500,000 tons in 2015 from 257,000 tons this year in a report yesterday. China’s manufacturing weakened further in July, according to a preliminary index released yesterday by HSBC Holdings Plc and Markit Economics.
“Copper may continue to be trapped in a narrow range, while any further dip may attract buying,” said Zhang Tianfeng, an analyst at Dongxing Futures Co. in Shanghai. “There’s no support from actual demand.”
Metal for delivery in November on the Shanghai Futures Exchange fell 0.4 percent to 50,310 yuan ($8,196) a ton. Copper for delivery in September on the Comex was little changed at $3.1750 a pound.
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