Copper dropped for the first time in three days, trimming a weekly advance, amid concern that slowing economic growth in China will hurt demand for metals. Aluminum, zinc, lead and nickel declined.
Metal for delivery in three months lost 0.7 percent to $6,953.75 a metric ton on the London Metal Exchange at 3:33 p.m. in Seoul. The price is still up 2.4 percent this week, the best run since the five days ended May 3. The contract for delivery in November slipped 1.3 percent to 50,040 yuan a ton ($8,149) on the Shanghai Futures Exchange.
Two gauges of China’s manufacturing fell last month and factory-gate prices for June marked the worst run of declines since 2002, data showed this month, underscoring a sustained slowdown in the world’s top metals user. Chinese Premier Li Keqiang said policy should ensure economic activity moves within a reasonable range, according to a Xinhua News Agency report.
“Macro indicators out of China have been weak so far,” said Chae Un Soo, a metals trader at Seoul-based Korea Exchange Bank Futures Co. “The comment by Li Keqiang does not seem to have assured the market that he will surely do something to boost growth.”
Futures for delivery in September fell 0.7 percent to $3.1565 a pound on the Comex in New York. On the LME tin gained.