Copper dropped after data showed that first-half expansions in most provinces in China missed targets, reinforcing concern that demand growth may slow in the world’s largest consumer.
Metal for delivery in three months fell as much as 0.6 percent to $6,840 a metric ton on the London Metal Exchange and was at $6,845 at 10:11 a.m. in Shanghai. The price declined to $6,820 yesterday, the lowest since July 10.
Seventeen of 30 provinces and provincial-level cities said January-to-June expansions trailed 2013 targets, compared with 14 of 31 in last year’s first half, according to data compiled by Bloomberg. The statistics highlight the risk of missing the year’s nationwide 7.5 percent target. China accounted for about 43 percent of global copper demand in 2012, according to Bloomberg Industries data.
“The biggest risk is still China’s macro data,” said Lian Zheng, an analyst at Xinhu Futures Co. in Shanghai. “Given the expectation of a surplus market, it’s hard to see any strong price rally.”
The global surplus may surge to 500,000 tons in 2015 from 257,000 tons this year, Goldman Sachs Group Inc. said in a report July 24. Orders to remove metal from LME warehouses fell to 316,500 tons, the lowest since June 21, data showed yesterday.
Copper for delivery in November was little changed at 49,120 yuan ($8,008) a ton on the Shanghai Futures Exchange. Metal for delivery in September lost 0.4 percent to $3.0960 a pound on the Comex.
On the LME, tin dropped, while aluminum, lead and zinc climbed and nickel was little changed.
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