The purchasing managers’ index from the China Federation of Logistics and Purchasing dropped to 51.1 for August from 51.7 in July. Economists surveyed by Bloomberg projected 51.2. China’s copper output rose to a six-month high in July and Goldman Sachs Group Inc. forecasts more smelting capacity in the second half, curbing imports of the refined metal. Prices declined 5.7 percent this year.
“If they export the refined copper from imported concentrate, it would be a big pressure to the LME,” Richard Fu, director for Asian commodity trading at Newedge Group SA in London, said by e-mail. “The Chinese August manufacturing PMI announced earlier today is marginally lower than expected.”
Copper for delivery in three months dropped 0.6 percent to $6,942 a metric ton at the close on the London Metal Exchange. Futures for December delivery fell 0.3 percent to $3.1515 a pound at 12:52 p.m. on the Comex in New York. Floor trading in New York is closed for Labor Day.
Aluminum, lead, nickel, tin and zinc declined. Aluminum supplies in China are climbing as previously idled capacities restart and new plants are set for the second half, Macquarie Group Ltd. said in a report dated today.
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