Copper declined, paring the first weekly advance in three, amid concerns that global supply will exceed demand as mine output increases and economic growth slows in China. Aluminum, zinc, nickel, tin and lead also retreated.
Copper for delivery in three months fell as much as 1.1 percent to $6,923 a metric ton on the London Metal Exchange before trading at $6,949.75 at 2:49 p.m. in Shanghai. The contract gained 1.3 percent this week, touching a one-week high of $7,044 yesterday.
The price is down 12 percent this year on concern that demand would slow. World supply may outstrip consumption in 2014 for a second year to a five-year high as mine output increases amid slowing demand from China, according to Pan Pacific Copper Co., Japan’s top producer. Orders to remove the metal from LME warehouses, or canceled warrants, dropped to the lowest level since June 20, bourse data showed yesterday.
The “fundamental picture remains unchanged,” said Xu Liping, an analyst at HNA Topwin Futures Co. in Shanghai. “Rising supplies and slower growth of Chinese demand compared with the past decade will continue to weigh on prices.”
The Chinese government signaled last week it will protect this year’s 7.5 percent growth target, which would be the worst performance since 1990, after expansion slowed for the second quarter in a row.
The contract for delivery in November was little changed at 49,990 yuan ($8,154) a ton on the Shanghai Futures Exchange. Metal for delivery in September fell 0.7 percent to $3.145 a pound on the Comex in New York.