Copper dropped in New York on speculation that China will continue to curb its property market, slowing demand from the world’s biggest consumer.
China’s new-home prices rose last month in 68 of 70 cities tracked by the government, indicating Premier Li Keqiang will need to maintain efforts to cool the property market even as economic growth slows. The nation’s policy makers are trying to avoid property bubbles and make homes more affordable while bolstering an economy that trailed analyst estimates in the first quarter.
“Any measures to cool down China’s property market would be negative for metals,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul.
Copper for delivery in July fell 0.4 percent to $3.3085 a pound by 7:26 a.m. on Comex in New York. Prices on the London Metal Exchange declined 0.3 percent to $7,285 a metric ton.
Stockpiles of the metal fell 0.3 percent to 628,025 tons, data from the LME showed today.