Copper declined for the first time in six days after Goldman Sachs Group Inc. said a global surplus may almost double in two years and manufacturing weakened in China, the biggest user. Aluminum and nickel fell.
Copper for delivery in three months fell as much as 1 percent, the most since July 17, to $6,984.25 a metric ton on the London Metal Exchange and was at $7,015 by 2:06 p.m. in Shanghai. Metal for delivery in November on the Shanghai Futures Exchange fell 0.2 percent to 50,450 yuan ($8,222) a ton.
The copper surplus may rise to 500,000 tons in 2015 from 257,000 tons this year, Goldman said in a report yesterday. China’s manufacturing weakened further in July, according to a preliminary index released yesterday by HSBC Holdings Plc and Markit Economics.
“Copper may continue to be trapped in a narrow range, while any further dip may attract buying,” said Zhang Tianfeng, an analyst at Dongxing Futures Co. in Shanghai. “There’s no support from actual demand.”
Copper for delivery in September on the Comex was little changed at $3.1835 a pound. On the LME, lead advanced, while zinc and tin were little changed.