Copper Pares Third Weekly Advance on China Demand Concern
Copper declined, paring a third weekly advance, on speculation that inflation may accelerate in China, curbing further stimulus. Tin also dropped.
Copper for delivery in three months lost as much as 1.1 percent to $7,275.25 a metric ton on the London Metal Exchange before trading at $7,345 as of 9:55 a.m. Shanghai time. The metal has gained 1 percent so far this week, poised for a third weekly climb.
China can’t be “blindly optimistic” about its inflation outlook at a time when uncertainties remain in areas such as property and farm produce prices, the country’s central bank said in its quarterly monetary policy report. The nation’s consumer prices gained 2.4 percent in April from a year ago, as producer prices fell 2.6 percent, the statistics bureau said yesterday.
“Concerns over China’s demand persist, weighing on copper prices,” said Wang Jingjing, an analyst at Founder Futures Co. “However, looking at the physical market, we do see a bit improvement, which is also evidenced by inventory drawdown, so we might see further gains.”
Metal for delivery in September fell 0.4 percent to 52,760 yuan ($8,606) a ton on the Shanghai Futures Exchange, as July copper futures on the Comex in New York declined 0.6 percent to $3.32 per pound.
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