Copper declined after touching a one-month high yesterday as some investors were concerned about demand ahead of the meetings between euro-area leaders.
Three-month delivery metal fell as much as 0.8 percent to $7,550.25 a metric ton on the London Metal Exchange, before trading at $7,585 by 3 p.m. in Shanghai. The contract rose as much as 2.4 percent yesterday, the most since July 3. December-delivery copper dropped 0.5 percent to $3.4455 a pound on the Comex in New York.
“Considering the weak demand, copper probably won’t have much further upside,” Lian Zheng, an analyst at Xinhu Futures Co., said from Shanghai. “Now that European leaders are back from holidays, the debt crisis will be in focus again.”
Luxembourg Prime Minister Jean-Claude Juncker visits Athens today to listen to a request by Greece’s Prime Minister, Antonis Samaras, for a two-year extension to the country’s fiscal-adjustment program. French President Francois Hollande is due in Berlin tomorrow to discuss the crisis with German Chancellor Angela Merkel as the European Central Bank fleshes out its plans.
The ratio of three-month copper to aluminum rose to a record 4.1 yesterday, and was at 4.07 today. Global apparent demand for copper outpaced supply by 21,000 tons in May, and refined copper balance for the first five months indicated a deficit of 405,000 tons, the International Copper Study Group said in a report yesterday.
Copper for December-delivery on the Shanghai Futures Exchange rose 0.8 percent to close at 55,330 yuan ($8,710) a ton.
Physical demand for copper and zinc in the first half of the year was at least as good as during 2011, while nickel and chrome usage was disappointing, Ivan Glasenberg, chief executive officer of Glencore International Plc., said yesterday.
On the LME, aluminum and tin fell, while lead and zinc were little changed. Nickel climbed.