Copper Set for Worst Quarter Since 2011 on China Concerns
Copper and the London Metal Exchange Index of six primary metals headed for the biggest quarterly declines since September 2011 amid as signs of slowing in China and uncertainty about the future of stimulus in the U.S.
Metal for delivery in three months on the LME dropped as much as 1.3 percent to $6,660.50 a metric ton and was at $6,753.50 by 10:42 a.m. in Shanghai. Copper fell 10 percent this quarter while the index dropped 9.9 percent. The index touched 2,911 on June 24, the lowest since June 2010.
Economists from Goldman Sachs Group Inc. to China International Capital Corp. this week cut their China growth forecasts for this year. China’s central bank on June 25 called on big banks to further their roles as market stabilizers, as signs of the nation’s biggest squeeze on credit in at least a decade pushed interbank borrowing costs to a record last week. China accounts for more than 40 percent of world copper consumption.
“What concerns the market most is China’s macro conditions,” Liang Lijuan, an analyst at Cofco Futures Co., said by phone from Beijing. “Copper has further downside.”
Metal for delivery in September on the Comex was little changed at $3.058 a pound. Copper for delivery in October on the Shanghai Futures Exchange declined 0.8 percent to 48,390 yuan ($7,872) a ton.
On the LME, tin, lead and zinc declined, while aluminum climbed.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at email@example.com